TAX 1.4 CONSTITUTIONAL FRAMEWORK
CONSTITUTIONAL FRAMEWORK.
:: You may ask: why should tax be imposed on my property after Section 44(1) of the 1999 Constitution has frowned against compulsory acquisition of property? You should note that Section 44(2a) provides for some derogations… for the imposition and enforcement of tax, rate or any duty.
We shall be looking at some provisions of the constitution which affect/relates to taxation.
:: Section 4 of the 1999 Constitution vest power on the legislature and recognises the power of the National Assembly and State Assemblies to make laws in their respective fields/areas.
:: Section 7(5) of the 1999 Constitution recognises the power of the local government councils to asses houses and tenements for the purpose of levying rates.
:: Section 24(f) of the 1999 Constitution imposes the duty of honest income declaration and tax payment on every citizen[1].
:: Section 59 provides for a special procedure of passing a tax bill.
:: Section 162(1) exempts personnel of the armed forces of the federation, the police, foreign affairs department of the government and residents of the FCT from tax on personal income. This generally does not mean that they would not pay tax.
:: Section 163 mandates the FG to distribute the net proceeds collected by the FG from PITax, CGtax and stamp duties to the States on the basis of derivation.
:: Section 165 mandates states to reimburse the Federal Government for expenditure incurred while collecting tax on behalf of the State.
:: Section 173(4) and 210(4) provide that Federal and State pensions shall not be taxed.
Some other provisions exist which indirectly relate to taxation. To this extent therefore, taxation has constitutional backing.
[1] Although one may claim that this Section falls under chapter 2 and is therefore non-justiciable.
