AN EXAMINATION OF THE POWER TO IMPOSE AND THE POWER TO COLLECT TAX UNDER THE NIGERIAN LEGAL SYSTEM

Abstract

This  article  aims  at  conducting  a  critical  evaluation  on  the  power  to  imposeand  the  power  to  collect  taxes under  the  Nigerian  Legal  System.  A  literal  interpretation  of  the  Constitution  may  lead  one  to  entertain  the belief that it is only the Federal government that has the power to impose taxes, under the Constitution of the Federal Republic of Nigeria, while States on the other hand, are merely left with the power to collect taxes and not  to  impose  taxes.  However,  a  thorough  examination  and  comparison  of  some  sections  of  the  Constitution will  reveal that  whilst the  Federal  Government  has the  exclusive  power  to  impose  items  of  taxes  stipulated in the Exclusive Legislative List, State governments also have the power to impose tax under what is known as the ‘residual list’. Furthermore, the taxing powers of each tier of government, as well as the extent of their powers shall be reviewed.