According to Godwin on Researchgate, tax is defined as “a compulsory levy imposed by the government on the income of individuals and cooperation to generate revenue for running the activities of the government.” From this definition, there are some key terms to take note of: “Compulsory levy” means it is mandatory for citizens who meet the tax requirement to pay their taxes or face penalties as stated by the law. Another key term is “imposed by the government.” This means that tax laws are established by the government with the primary goal of generating revenue for running the activities of the government. Although paying tax is compulsory, it is beneficial because, in the end, it is all in the favour of the citizens and the country at large (or at least that's how it should be). For today’s edition of Hive learners prompt, we are asked to discuss the tax system in our country. How bad are the tax laws in your country?
The Nigerian tax system can be traced back to the British administration during the colonial era. The British introduced a tax system in the northern part of Nigeria. Soon enough, it spread to other parts. Today, more than a century after that period, the tax system is still in place, but developed and different. There are different laws guiding the tax system in Nigeria. There are laws guiding public companies, private industries, and personal income. However, despite these laws, it is difficult to establish equality, which breeds the question; who exactly is meant to pay tax? With the look of things, it seems like the government workers are the only ones paying tax because they pay directly to the government. My mom works in a government hospital. Whenever they pay her salary, they remove the tax, which they clearly state in the payment slip.
There are laws guiding the tax system in Nigeria, but the problem is that they are not effective and efficient. I’m not sure how the tax system works for government workers, but I’m guessing they take their tax based on the annual (or monthly) income per person. I have witnessed a scenario where government officials (or so they claimed to be), went into rural markets, demanding money for tax. Those who failed to comply got either bundled into a car or got their goods seized. Overall, on a scale of 1-10, the tax laws in my country are a 5. The problem isn't with the tax laws, it lies in how the tax is used.
As I mentioned above, In Nigeria, only government workers pay taxes directly through payroll deductions, while others, especially those in rural areas, don't pay. This creates an unequal tax burden. The amount government workers pay varies from one worker to another, depending on the income. Sometimes, government workers go into rural areas to collect taxes from people who do not pay directly to them. This is a way to establish equality (make everyone pay tax), but it is still not effective and efficient.
According to the definition above, tax is generated for running the activities of the government (country). With the way things are going in Nigeria, it seems the tax citizens are paying only goes to the bellies, cars, and houses of the government. Let’s take a look at the roads in Nigeria. Every year, numerous accidents happen on Nigerian roads, simply because the roads are in poor condition. I have lived in Osun state my entire life, and since I was born, some roads have remained unchanged - filled with potholes. During the rainy season, these potholes become like swimming pools, making it difficult for drivers to drive smoothly and comfortably. I recently watched a funny video on Instagram; a driver tried to navigate a road filled with potholes, it was raining and the car was swerving- just as it was about to drift off the road, one of the passengers jumped through the window and fell into a pothole. Funny as it is, this is the reality of Nigerian roads.
How about funding public hospitals and creating pipe-borne water for communities who struggle? These are areas where the tax should be channeled, but unfortunately, things are the opposite. The government only does these things to find favor from the citizens during elections.
Thanks for reading.
Posted Using INLEO
