Taxes and levies are important sources of revenue generation all over the world, accounting for the greater part of the revenue that is annually generated in most of the advanced economies of the world (Dandago, 2011). In an economy with more than one tier of government, efforts must be made to ensure that each tier of government is in control of some taxes and levies so that revenue assurance could be equitably established at each tier of government. Before the 1997 budget pronouncement, Nigerian taxpayers had been complaining of multiple taxes to the extent that businesses were suffering from heavy cost of production, which ultimately had been bringing about high prices of goods and services.