The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Prof. Taiwo Oyedele, has sparked debate after stating that anyone engaged in “runs” or similar informal activities is liable to pay tax, regardless of the legality of the service being offered.
Speaking on the principles of taxation, Prof. Oyedele explained that tax laws are neutral on whether an activity is legal or illegal. What matters, he said, is that income is being earned from rendering a service, which automatically creates a tax obligation.
“If you’re doing runs, it means you’re rendering a service. Therefore, you’re liable to pay tax. Tax law doesn’t care if it’s legal or illegal,” Oyedele said.
The remark has triggered mixed reactions across social and traditional media, with some Nigerians questioning the morality of taxing proceeds from unlawful activities, while others argue that the principle is consistent with global tax practices, where income — regardless of its source — is taxable.
Prof. Oyedele, however, emphasized that taxation and law enforcement are separate functions, noting that while agencies like the police address legality, the tax system focuses solely on revenue generation for national development.
This statement comes as the Federal Government intensifies efforts to widen Nigeria’s tax net, reduce dependency on oil revenues, and capture earnings from the vast informal economy.
0 Comments