ABSTRACT
The
Nigeria
tax system had its share in terms of being adequately mobilized for an increased revenue and fiscal
actions. The State tax revenue is no exemption or Exception to the fact that
the revenue generating ability is grossly
inadequate to meet up its government functions.
Taxation which is seen as compulsory
payment made by the citizens of an entity (country) to the government is
mis-constructed in terms, of what the government tax Agencies actually realizes
from it.
The term “Taxation†as a source of
Government revenue with special
reference on the states tax revenue sources, is seen in this study as a
lopsided mobilization effort in some states, used as a case study. The research
carried out, using the ratio analysis and the difference equation evidently
pointed out the fact that some states likes
Lagos,
Anambra etc. is able to mobilized. A sizeable pool of revenue with
recourse to depending on the federal
government.
Thus, it is suffix to say here that
while some states are reaping a large share of revenue from tax some others are
not able to able to meet up the challenges of tax collection either due to poor
tax administration, lack of proper orientation to the indigenes on tax payments
or inadequate commercial and industrial
development in the states affected.
This study is enhanced because of the
need to reappraise the tax system of each state, enlighten the supposed tax payers, give concessions. When
aftermath of taxation the proceed of the aftermath of taxation into feasible
developmental use and Re-Organise the tax Administration system of the states,
to foster a move efficient and effective
tax mobilization efforts of states.
TABLE OF
CONTENTS
Title page
Approval
page
Dedication
Acknowledgement
Abstract
Table of
contents
CHAPTER ONE
1.0
Introduction
1.1 Objectives of the study
1.2
Significance of study
1.3
Scope and limitation of study
1.4
Terminologies in study
CHAPTER TWO
2.0 Background of the study
2.1
Principles of taxation in Nigeria
2.2
Theory of tax structure development in Nigeria
2.3
Administration of tax structure
2.4
Functions of a good tax system and Administration in Nigeria
2.5
Divisions of taxing power to state under the Nigeria
constitutions
2.6
Analysis into the State Government tax revenues
2.7
Rights of the State tax boards and the tax payers
2.8
Economic effect of State Government’s tax and it’s
implication
on the government.
CHAPTER THREE
3.0 Summary of finding, Conclusion and
Recommendation
3.1
Summary of findings
3.2
Conclusion
3.3
Recommendation
Bibliography
CHAPTER ONE
1.0 INTRODUCTION
Taxation
can simply be seen as a compulsory
transfer or payment (or occasionally of goods and service) from private
individuals, Institutions or groups to the government, Anyanwu, (1998). It is a
burden which every citizen must bear to sustain his or her government.
Another perspective of the definition
has it that, taxation is the compulsory payment levied by the government on its
citizens to generate revenue and control economic activities, hence it is
backed by law. Taxation has not only influenced the economy, it has also become
an important instrument of economic policy.
Thus its importance lies primarily
in its ability to raise capital
formation of the public sector for the development and growth of the economy.
Its regulatory roles of consumption and hence of stabilization as well as of
income redistribution are accordingly derivatives of the primary to provide
service for the community, whether to the individuals families or the wider community. Additional
to their service role, however, most public service organizations under
the State Government can that including
seeking a profit or contribution on that trade, and or they can make charge for
some or all of their services. But since profit is not the main essence of
these (corporations) establishments, taxation happens to be one of the avenue
through which these corporations make up for administration expenses and
revenue.
The government has certain functions
to perform for the benefits of those, it
governs. The scope of these functions will depend, among other things, on the
particular and economic orientation of the members of a particular society at a
given point in time, Their needs and aspirations and their willingness and ability to pay tax. As the functions of
the government increase, the revenue of financing those functions must
necessarily increase.
Nigeria
operates a federal system of government
which allows the division of powers among different (3) tiers of government
which includes the federal, State and Local Government.
In all the ability to differentiate or
divide the taxing power of these tiers seems simple enough when it comes to the
terms of starting the various types of taxes that are available within this
various tiers. But for the course of
this study the various types of taxes levies collected by the State Government
includes:
PERSONAL
INCOME TAX: PAY – AS –
YOU EARN (PAYE) WITHOLDING TAXES: CAPITAL
GAIN TAX: STAMP DUTIES: ROAD TAXES and so
on.
Like in other countries, all fiscal
plans of action in Nigeria Operate within a defined theoretical and regulatory
frame work of fiscal federalism.
An attempt is made in this study to
investigate the state tax revenue functions in the Nigeria economy with a view to
assessing the internally generated revenue of some State with their average
performance in form of their collected revenue. It also studies the adequacies
of revenue mobilization effort of the State Government and the implication for dynamic fiscal
policy.
1.1 OBJECTIVES OF THE STUDY
This study aims to investigate how well
the state government in Nigeria
has performed in terms of mobilizing sizeable pool of revenue from legitimate
sources for development.
Specifically, the study will look into
tax administration and the structure of the Nigeria tax system.
Lastly, a brief analysis shall be done
by the researcher to look into the various components of the state tax system
as an avenue for mobilizing revenue.
1.2 SIGNIFICANCE OF STUDY
Comparison
of different State Government revenue generating ability will and the researcher
to know how well the government is able to raise revenue on its own apart from
its statutory allocation and how it can develop its revenue mobilization in
terms of increasing its revenue from taxation.
1.3 SCOPE AND LIMITATIONS OF STUDY
This
study aims at covering the state governments taxes in terms of mobilization and
collection, so also is the spectrum of the various types of taxes collected:
Thus the period under consideration
for study will be 1992 to 2002, with all figures in million of Naira.
Information necessary to account for
increased revenue has been difficult to obtain, due to a number of tax changes
that took place within the period of study. Thus on examination of the ratio of
internally generated revenue to statutory revenue allocation as used by Nyongs
(1998) will be carried out by the
researcher.
1.4 TERMINOLOGIES IN STUDY (TAXATION)
Taxing Power: The power within a tier of government in
impose a tax by its own law and prescribe conditions for the collection and due
administration of the tax either by its own agency or that of another tier of
government.
Tax: A burden which every citizen must
been to sustain his or her government.
Tax Rate: This is the amount of tax which is levied per
unit of base.
Tax Policy: Policies that aims at amending the
tax rate so as to suit economic fiscal policy measures.
Tax
Incidence: This is where the
burden of tax falls or who bears the burden
of tax.
Tax Base: It is the object that and it could
be the value of the income.
Taxable
Capacity: It is the connected with the amount of tax which could be
jointly or fairly imposed on the individual.
Tax
Compliance: The
obedience of a tax payer totally under the law. This obedience can be induced,
voluntary or compelled.
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