The Imperatives of an Effective and Equitable Taxation in Nigeria

Abstract

At the beginning of every year, public and private sector organisations, government agencies, industries, commercial firms, individuals and groups, look forward with anxiety to the broadcast or announcement of the budget by the President, at the Federal level, the Governor at the State level and the Local Government Chairmen at Council level. This is because budgeting is a major statement by the government which has lots of inputs on the activities of various organisations and individuals. Taxation has been a weapon of fiscal and economic controls by government over the ages. It has become a crucial element in the lives of individual corporate bodies, firms and government agencies to the extent that drastic change in tax policy in any fiscal year, sets in motion a chain of repercussions at homes, offices and factories. They are compelled by new monetary and fiscal measures to augment their accounting and operational strategies in keeping with new policies and guidelines contained in the budget. This essay analyses the Nigerian tax policies, the Nigerian tax authorities and the administration of taxation in Nigeria and the relationship between taxation and economic growth. Although the conclusion is a very conclusion came up with a very positive encouragement in our tax collection, there is still room for improvement especially in the tax policies, tax laws and tax structure which must be reviewed and overhauled to suit modern managerial concepts and information technology. Above all, accountability should be embraced by all and sundry to tackle corruption, which pervaded all the strata of the society in general and the Nigerian tax administrators in particular. While the recommendations in this paper cannot be said to be exhaustive, it is hoped that if they are adopted the yield for tax revenue will multiply and the economy could be so buoyant, to enable Nigeria to provide various services and infrastructural facilities for public use and general welfare, through collective efforts and public funds. Above all, there is need for public safety law and order as well as the security of life and property; now, more than before. The revenue generated from tax could also be used to reduce or settle public debt.