Taxes in the Country

In: Business and Management

Submitted By SimonOy
Words 3201
Pages 13
INTRODUCTION 1.1 BACKGROUND OF THE STUDY An area with settlement of people as far back as 9000BC, with a total area of 923,770sq.km/356,700sq miles and total land area of 910,770 sq.km/351650sq miles, having now a population of over 140 million and named Nigeria in 1914 has since its existence, had several authorities, kingdoms and empires among which are: The Benin Kingdom, Oyo Empire, Nupe Kingdom, Borno Empire, Fulani Empire, and the Hausa Kingdom. The country today operates a federal system of government in which power is shared between: the Federal, State and Local governments. Revenue generation has always been a crucial part of every government, authority or kingdom as the case may be. The revenue available determines to a large extent its capabilities, policy, functions and plans among others. For revenue generation, tax has always been a vital source in order to meet expenditures of the government. According to Ogundele, the essence of all taxes is the removal of resources from private hands of the individuals, corporate bodies, trusts, families, societies, and communities into the public sector to finance activities that has to do with the whole society. According to Louis Kaplow (2006;2) “Raising revenue to fund government expenditures on public goods and services is a fundamental purpose of taxation” Also Lymer and Oats (2008;14) noted that government functions include managing and regulating the economy (for example, protection of the environment) Developing the society and providing public goods. A comparison of the tax percentage, revenue generated by the government before 1970s, with that in recent time’s shows that there has been a sharp decline. Over the past four decades, the country’s revenues were largely derived from primary products. Between 1960 and the early 1970s, revenue from agricultural products dominated, while revenue…...

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