The Impact of the COVID-19 Pandemic on Taxpayers in Nigeria

Abstract

There is no doubt that the outbreak of the Coronavirus disease (COVID-19) strikes the world with unparalleled disruption in economic and business activities. The impacts of the COVID-19 pandemic have dealt a serious blow to businesses, households, individuals, and revenue generation by governments across the globe with Nigeria being no exception. As a result, Nigeria introduced certain tax measures through the Emergency Economic Stimulus Bill 2020 to mitigate the impact of the pandemic on taxpayers but these measures are inadequate and in some ways impracticable. The measure includes a temporary relief to companies and individuals to alleviate the adverse financial consequences of a slowdown in economic activities as a result of the COVID-19 pandemic. The article argues that it is clear that the COVID-19 pandemic has drastically reduced business activities and the Bill does nothing to reduce or remove the existing tax burden but simply postpones the same to a later date. This negates section 14(2)(b) of the Nigerian Constitution 1999 as amended which provides that the security and welfare of the people shall be the primary purpose of government. This raises a critical question as to whether revenue generation by the Nigerian government is more important than preventing hardships and reducing the burden of Nigerian taxpayers whose welfare the government has sworn to protect through the Constitution. The implication is that the Nigerian government needs to revise its tax regime encompassing incentives such as tax credits, write-offs, and tax holidays in a bid to provide adequate relief to the taxpayers pending the eradication of the pandemic and a return to economic stability.