Lagos: The Manufacturers Association of Nigeria (MAN) has made a strong appeal for the seamless implementation of the Single Inter-State Road Tax Sticker (SIRTS) and Single Haulage Fee (SHF) systems. These initiatives are seen as crucial steps toward addressing the issues of illegal road taxes and the heavy burden of multiple taxation on businesses operating across Nigeria.
According to News Agency of Nigeria, the Joint Tax Board introduced SIRTS and SHF to eliminate the challenges of double taxation and the proliferation of multiple stickers. SIRTS is an electronic sticker that is issued annually during vehicle registration, facilitating the inter-state movement of goods and vehicles. Experts highlight that the scheme is designed to harmonize transport taxes, prevent extortion on highways, and reduce business operation costs.
Mr. Segun Ajayi-Kadir, the Director-General of MAN, emphasized the importance of these initiatives for enhancing Nigeria's business environment and transport logistics. However, he raised concerns about implementation challenges such as multiple demands and ambiguous payment procedures. Ajayi-Kadir also pointed out issues with arbitrary enforcement by officers, which has led to delays, increased costs, and frustration among manufacturers. He stressed that while manufacturers are willing to comply, they are dissatisfied with the current implementation methods. He called for fairness and transparency in policies affecting industries and advocated for a collaborative approach to make SIRTS and SHF more business-friendly and efficient.
Dr. Ayodele Subair, Chairman of the Lagos State Internal Revenue Service (LIRS), echoed the need for joint efforts among stakeholders. Represented by his Special Adviser, Mr. Tokunbo Akande, Subair outlined the benefits of the initiatives for manufacturers, including reduced operational costs, elimination of illegal levies, and improved goods delivery times. He also noted improvements in documentation, supply chain efficiency, and increased competitiveness in the industry. However, he acknowledged ongoing challenges, such as resistance from informal collectors, low awareness among transport operators, poor coordination among state agencies, and the absence of digital enforcement tools. To address these issues, Subair advocated for continued sensitization efforts involving MAN, unions, and enforcement agencies, as well as the imposition of strict penalties to deter illegal collections on highways. He underscored the importance of better state cooperation under the Joint Tax Board and the use of digital tools.
Mr. Olugbenga Olaleye, Chairman of Ogun State Internal Revenue Service, noted that over 20 states have adopted SIRTS. He emphasized that proper enforcement of the initiative would lead to a transparent, harmonized tax system across states, reducing illegal roadblocks and extortion while restoring trust in Nigeria's road tax structure. With a single SIRTS sticker from any state, inter-state access is granted nationwide. Olaleye further explained that the SHF is a trip-based fee paid between loading and offloading states, not based on the content of the load.