TAXATION

The inadequate collection of internally generated revenues IGR, in Nigeria, has been identified as a major factor militating against economic and infrastructural development in the country.
In today's news analysis correspondent underscores the importance of effective and efficient taxation system to socio economic development in Nigeria.
Taxation is a system of revenue generation by government.
It is a compulsory levy imposed by government on individuals or businesses to enable it perform it legitimate functions to the society.
The revenue collect from taxes is used for infrastructural projects such as basic social amenities as well as security and payment of salaries of civil servants among others.
Taxation worldwide is a way of ascertaining citizens sense of responsibility towards the society.
By paying taxes, citizens are making monies available to the government and its agencies to run the country.
However not much attention is paid to raising funds through taxation, probably because of over dependence on oil wealth.
The fall in the price of crude oil in the global market has necessitated the search for alternative sources of revenues and tax is one of such ways.
But Nigerians are reluctant to pay taxes because governments does not show enough evidence of what the previous taxes are used for.
Another challenges facing taxation in Nigeria is the poor taxation system at the federal, state and local government levels, in terms of collection and remittance.
The non remittance of taxes by some tax officials coupled with tax invasion by some corporate organizations in the rural and urban areas are factors hindering effective taxation in the country.
Statistics however reveals that Nigeria is among countries of the world with low tax generation rate, a situation which leads to government borrowing or relying on a rise in crude oil price.
Economists are of the view that effective utilization of taxes collected will help to boost government's revenue thereby reducing borrowing.
Prudent spending of tax payer's monies on infrastrutural projects, basic social amenities, security, prompt payment of civil servants' salaries, among others will go a long way in spurring Nigerians to paying their taxes regularly.
Government at the federal, state and local levels should fashion out ways by which Nigerians can conveniently pay their taxes, either electronically or through the banks rather than paying through revenue collectors.
That way the issue of fake and fraudulent revenue collectors who go about with fake receipts to collect taxes from people will be eradicated thereby leading to transparency and accountability in the Nigerian taxation system.
The need to intensify awareness campaigns on the importance of paying tax should be communicated in different Nigeria languages and broadcast on radio and television stations, so as to involve everyone in tax payment.
If the nation's economy must be boosted, then the issues raised in this work must be considered seriously.