Nigeria’s tax system
Sir: It is expected that when citizens perform their civic responsibilities, government on the other hand, will fulfill its obligations to the society. It is unarguable that taxes make a nation strong. At Mount Sinai, where the law was delivered to Moses, whoever was found guilty of violating the commandments had to face the wrath of the law. Taxation is one of such laws given by the creator. Taxation is a fiscal tool that governments use to strengthen their economies. Various taxes are levied by the government on the incomes, wealth and profits of individuals, families, SMEs and corporate organisations.
A country’s ability to attract investment and stimulate economic activity is hinged on the ability of its government to maintain an average corporate tax rate that will ultimately encourage investors. The question begging for answer is: How do we simplify the tax assessment system to encourage voluntary compliance?
Till date, the collection of illegal levies and taxes at the state and local government levels has continued unabated. In local parlance, once the head is sick, the whole body is in pain. The tax system in the country will continue to be in a rig-mare until there is total overhaul – from federal to state and local levels. It is imperative that we build a tax system that is solidly devoid of sleaze, exploitation and excesses.
Restructuring the tax system in the country will pave way for rapid growth of businesses, promote economic progress and ultimately reduce poverty.
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