Pdf taxation in nigeria government

State governments in nigeria have developed over a number of years. Pdf on jan 1, 20, oyewo babajide and others published taxation and tax policy as government strategy tools for economic development in nigeria find, read and cite all the research you need. Taxation and economic growth in nigeria onakoya, adegbemi babatunde1 afintinni, oluwatobi ibukun2 1,2department of economics, banking and finance, babcock university, ilishan remo, nigeria abstract over several decades, taxation has been taken as a veritable medium of engineering the growth or performance of an economy. Unfortunately, we are far behind on tax law reform in nigeria as the last time any business tax legislation was enacted or. Full project the effect of etaxation on government. The study will address the link between tax administration and governance in the specific cases of lagos. Taxation and local government development in nigeria pdf. Given the dynamic nature of taxation, ola 2001 argued that tax reforms are necessary to effect the required changes in the national economy. This means that in the modern society, societal members are. Taxation, imposition of compulsory levies on individuals or entities by governments. In conclusion,after a proper explanation of the various taxes paid in nigeria,what the levels of government can ask for,what the taxes collected by government is used for. In nigeria, the governments fiscal power is based on a threetiered tax.

Ofurum et al impact of etaxation on nigerias revenue and economic growth. Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes as well. The objective of this study is to investigate the impact of taxation on economic development of nigeria proxy by the gross domestic product gdp. Relevance of tax revenue resources to infrastructural. Agreement between the government of the united kingdom of great. The bill also seeks to address the taxation of industries, such as insurance, startups and the capital markets, evaluated by the federal government of nigeria as critical to the growth and development of the nigerian economy with a view to stimulating activities in. The legal framework and system of taxation in nigeria. Generally, the work is done to determine and know if taxation forms a large part of government revenue and how the utilization of this revenue effectively to promote economic gainful activities, developments and to erase the erroneous belief that it is a. However, taxation has provided reasonable revenue from government in recent times. I hope the readership have been properly educated on the role of taxation in the nigerian economy.

Double taxation relief between the federal republic of. Therefore, this study will throw more light on the effect of etaxation on government revenue in nigeria by focusing on the prepost analysis of taxation in nigeria. Under this period, community taxes were levied on communities. This is to align the tax returns with the relevant government fiscal year. How to understand taxation in nigeria if youre considering starting a business in nigeria, either as a local entrepreneur or a foreign investor, tax laws are a very important factor to consider. In nigeria, the government can emphasize on any one of the tax forms depending on the objective it wants to pursue. Tax has been defined as a monetary charge imposed by the government on persons, entities, transactions and properties to yield revenue.

Many companies in the past have lost a huge fraction of their profits to. In a bid to stem the challenges of multiplicity of taxes and levies in nigeria, the legislature enacted the taxes and levies approved list of collection act 1998, whereby taxes, levies and fees collectible by the various tiers of government were spelt out as follows. Impact of taxation revenue on economic growth of nigeria. Historically, the development of direct taxation in state government in nigeria can be traced to the period before the british precolonial period. Taxation is not a new word in nigeria or the world as a whole. The sale of real estate properties is subject to a 10% tax on the gains. Government in nigeria is in recent times attaching keen interests in getting its citizens individuals and corporate bodies to brace up to the responsibilities of paying taxes. Pdf nigeria is governed by a federal system, hence its fiscal operations also adhere. The impact of tax policy on economic growth in nigeria. Government, tax administrators, practitioners and academics alike. The cit rate is 30% for large companies companies with gross turnover greater than n100m, assessed on a preceding year basis i. These legislations are the personal income tax amendment act 2011, companies. The government is also seeking for a way to incur minimal cost in the process of enforcing tax on nigerias. Pdf taxation and tax policy as government strategy tools.

Pdf this paper investigated state government taxation in nigeria with a view to determine its impacts on economic growth. Nigeria depends on crude exports for about 70 per cent of government revenue and more than 90 percent of foreign exchange. Under companies income tax act you have to pay companies income tax if you are a resident or nonresident company incorporated in nigeria. This study examined the impact of etaxation on nigerias revenue and economic growth. There was the introduction to tin, which is a unique taxpayers identification number and tin became effective since february 2008. Table 1 nigerias federal, state and local tax jurisdiction and assignment. An appraisal of taxation as a source of government revenue. This publication is a summary of the major tax laws in nigeria, prepared for general. Introduction taxation is a main source of revenue to governments across the world. Taxation, revenue allocation and fiscal federalism core.

Generally, a substantial part of the revenue of the federal, state and local government of nigeria is realised from taxation but theres more to government earnings than just taxation. The main objective of the study is to investigate the impact of taxation revenue on nigeria economic growth. This form of tax is reported to be one of the most stable sources of revenue to governments however. Basic principles of taxation in nigeria tax nigeria mondaq. For taxation to make the desired impact on the economic development of nigeria as the major source of government revenue. The study period spans economic cycles for about 66 percent of the life of. The federal inland revenue service has also developed a. Resident companies are liable to corporate income tax cit on their worldwide income while nonresidents are subject to cit on their nigeriasource income. Under current nigerian law, taxation is enforced by the 3 tiers of government, i. Obviously, everything about the nigerian taxation cannot be covered in this article, so try to click the links provided on certain text to get a wider scope and explanation. The fiscal regime governing petroleum profit taxation in nigeria babatunde ajani adeyemi introduction tax is a compulsory financial exertion by government on its citizens aimed at servicing the needs of the state. The local government collects taxes through the local government revenue committee. In nigeria, nobody can dispute the fact that though this taxes are been collected, they are.

For instance, it was revealed that the significant increase in revenues from. Introduction globally, taxation is the nucleus and the path to development because it is one of the formidable options to generate revenue by government. The study focuses on the impact of petroleum profit tax, company income tax, personal income tax, value added tax revenue on nigeria s economic growth between 1980 and 20. As a result, the gb exploited the resources and people of africa. Given that the purpose of introducing electronic tax system is to improve revenue collection which will in turn improve the countrys economic growth, the study empirically examined how the implementation of etaxation in 2015 has affected tax revenue, federally collected revenue and taxtogdp ratio. The effect of taxation on nigeria economy project topics. Taxation can be defined as the system of imposing a compulsory levy on all income, goods, services and properties of individuals, partnership, trustees, executorships.

The modern view of taxation stems from the common premises that no one can be an island for him or herself. However, this meant to appraise taxation in nigeria and in odootin local government in particular, among these problems are wrong declarations of income, which is rampant among the self employed citizen like farmer and businessmen and others. Like other countries, the main function of the nigerian tax system is to generate revenue for the running of the government at all levels and. Taxation in nigeria understanding nigerian tax system. Federal inland revenue service firs we do our best to provide accurate and up to date information. Value added tax vat in nigeria is levied on all products and services traded within the country and payable to government at a 5% rate, one of the lowest in the world. Impact of tax administration on government revenue in a. Impact of etaxation on nigerias revenue and economic. There is no doubt that taxation must have affected the economic development of nigeria. To determine the effects of taxation on employment and salaries of working in nigeria. Looking at the history of taxation in nigeria, the beginning of the colonization period was connected with various trading posts and companies in the west africa. Nigerias tax system is also tasked with the responsibility of providing the government with enough resources to finance the countrys development company tax and petroleum royalties in fact account for the primary source of government revenue. In nigeria, different legislations that allow the government tax its citizens and to increase the tax revenue of the country exist.

Nigeria has a number of tax treaties referred to as double taxation agreements with a number of countries, these are designed to ensure that the tax payable in nigeria on the profits of a nigerian company being remitted into the country are reduced by the amount of foreign tax paid abroad and vice versa where an overseas company receives profits from nigeria that. Property tax is generally a tax imposed by municipalities upon owners of real property within their jurisdiction based on the value of such property. The impact of taxation as an aid to economic development includes abstract and chapter one, complete project material available the impact of taxation as an aid to economic development in edo statea case study of oredo local government area, edo state, nigeriaproposalthe research work will discuss in detail the impact of taxation as an aid to. Taxation in nigeria plus history of taxation in nigeria. Pdf an assessment of the prospects of property tax. This act regulates the personal income tax throughout the federation. Sources of government revenue in nigeria nigerian finder. The british empire tried to fight for economic dominance in the region. Federal government, tax revenue, nigeria, revenue collection, firs. Download complete project materials on taxation and revenue generation in nigeria local government administration from chapter one to chapter five with references taxation is seen a source of revenue generation with a particular view of asa local government, before now it is fact that lots of research has been carried out with regard to activities of the local government many problems which. Nigeria tax system is historical odusola, 2006 dates back to 1904 when the personal income tax was introduced in northern nigeria before the amalgamation, through the native revenue ordinances 1917 the west, the direct taxation ordinance no.