Taxation in Pre Colonial Nigeria
CHAPTER THREE
THE THREE ERAS OF TAXATION IN NIGERIA
General Historical Overview of Taxation
Taxes are as old as the history of organised human society. During the reign of the Pharaohs in Egypt tax collectors were called scribes and taxes were collected on various items including cooking oil.1 In the ancient Greek city of Athens, taxes were especially important in times of war. The tax imposed during times of war was known as eisphora and no one was exempted from this tax. After the war, when additional resources were gained, the eisphora tax was refunded to the taxpayers. Aside this tax, the Athenians imposed a monthly poll tax called metoikion on foreigners.2
In ancient Rome, the earliest taxes were called portoria. These were custom duties on imports and exports. During the reign of Caesar Augustus, several tax reforms were carried out by the Roman government. These included replacing the publicani (tax collectors) with city councils as tax collectors, imposing a 5% inheritance tax to provide retirement funds for the military and a 1% sales tax on every item except sale of slaves which attracted a 4% tax rate.3 In England the first known tax assessment was during the Roman occupation which began in the year 43 AD with the invasion of Britain by the Roman Emperor, Claudius I and ended about 410 AD.4 After the collapse of the Roman Empire, the Saxon Kings imposed various types of taxes such as danegeld (land tax), scutage (a tax paid in lieu of serving in the army) carucate (another land tax that replaced danegeld and was collected only on plowed land).5 Most of these taxes were either replaced or modified following the Norman conquest of England in 1066. The first law on income tax was passed by the English Parliament in
1404 and the first deduction of income tax at source was done in 1512.6
The point has been made in the preceeding chapter that the various pre-colonial Nigerian empires practiced various forms of taxation. In the
THE THREE ERAS OF TAXATION IN NIGERIA
General Historical Overview of Taxation
Taxes are as old as the history of organised human society. During the reign of the Pharaohs in Egypt tax collectors were called scribes and taxes were collected on various items including cooking oil.1 In the ancient Greek city of Athens, taxes were especially important in times of war. The tax imposed during times of war was known as eisphora and no one was exempted from this tax. After the war, when additional resources were gained, the eisphora tax was refunded to the taxpayers. Aside this tax, the Athenians imposed a monthly poll tax called metoikion on foreigners.2
In ancient Rome, the earliest taxes were called portoria. These were custom duties on imports and exports. During the reign of Caesar Augustus, several tax reforms were carried out by the Roman government. These included replacing the publicani (tax collectors) with city councils as tax collectors, imposing a 5% inheritance tax to provide retirement funds for the military and a 1% sales tax on every item except sale of slaves which attracted a 4% tax rate.3 In England the first known tax assessment was during the Roman occupation which began in the year 43 AD with the invasion of Britain by the Roman Emperor, Claudius I and ended about 410 AD.4 After the collapse of the Roman Empire, the Saxon Kings imposed various types of taxes such as danegeld (land tax), scutage (a tax paid in lieu of serving in the army) carucate (another land tax that replaced danegeld and was collected only on plowed land).5 Most of these taxes were either replaced or modified following the Norman conquest of England in 1066. The first law on income tax was passed by the English Parliament in
1404 and the first deduction of income tax at source was done in 1512.6
The point has been made in the preceeding chapter that the various pre-colonial Nigerian empires practiced various forms of taxation. In the
References: 1 See A History of Taxation. Available at http://www.taxworld.org/History/ TaxHistory.htm (accessed 14/1/2009) 4 Ibid, 2. See also England, Microsoft Encarta 2008 (accessed 5/1/2009). 5 A History of Taxation, op 8 Akanle, O., Nigerian Income Tax Law and Practice (Lagos: Centre for Business and Investment Studies Ltd, 1991) 19 11 Akanle, O., Nigerian Income Tax Law and Practice, 21 – 22. 12 Omolewa, M., Certificate History of Nigeria (Lagos, Longman Group, 1986) 41 13 Ibid, 48. 14 Crowther M., The Story of Nigeria (London: Faber & Faber, 1962) 38 est Topics on Nigerian Economic and Social History (Ile-Ife: University of Ife Press Ltd, 1980) 66 29 Willet, F., Ife in the History of West African Sculpture (London: Thames & Hudson,1967) 126 46 Akinyele, I. B., Outline of Ibadan History (Lagos: Alebiosu Printing Press, 1946) 72. The Three Eras of Taxation in Nigeria 115 50 Hinderer, A. M., Seventeen Years in the Yoruba Country (London: Seeley, Jackson & Halliday, 1873) 59 – 62 Political and Administrative (1913 - 1918) (3rd ed.) (London: Frank Cass & Co. 1970) 178