The work argues that bad governance is the root of the conflict as successive government abandoned the infrastructural need of the nation in the sector which culminated in the dependency on imported refined crude oil products. This created it own problem of managing traffic as the major importation outlet is in Lagos and there is lack of parking lots to accommodate the inflows of unprecedented tanker vehicles.
Also, lack of communication which brews mistrust, lack of confidence and end up in conflict played a part. Part 1 of the schedule contains taxes to be collected by the Federal Government. These include: Companies Income Taxes; Withholding tax on companies, residents of the Federal Capital Territory, Abuja and non-resident individuals; Petroleum profits tax; Value added tax; Education tax; Capital gains tax on residents of the Federal Capital Territory, Abuja, bodies corporate and non-resident individuals; Stamp duties on bodies corporate and residents of the Federal Capital Territory, Abuja; and personal income tax of members of the Armed Forces of the Federation, members of the Nigeria Police Force, residents of the Federal Capital Territory, and staff of the Ministry of Foreign Affairs and non- resident individuals.
Similarly, Part II of the Schedule presents taxes and levies to be collected by the State Governments and they include: Personal Income Tax in respect of —Pay-As-You-Earn PAYE and direct taxation Self-Assessment ; Withholding tax individuals only ; Capital gains tax individuals only ; Stamp duties on instruments executed by individuals; Pools betting and lotteries, Gaming and casino taxes; Road taxes; Business premises registration fee; Development levy individuals only ; Right of Occupancy fees on lands owned by the State Government in urban areas of the State; and Market taxes and levies where State finance is involved.
Part III of the Schedule contains taxes and levies to be collected by the Local Governments and these include: Shops and kiosks rates; Tenement rates; On and Off Liquor Licence fees; Slaughter slab fees; Marriage, birth and death registration fees; Naming of street registration fee, excluding any street in the State Capital; Right of Occupancy fees on lands in rural areas, excluding those collectable by the Federal and State Governments; Market taxes and levies excluding any market where State finance is involved; Motor park levies; Domestic animal licence fees; Bicycle, truck.
Canoe, wheelbarrow and cart fees, other than a mechanically propelled truck; Cattle tax payable by cattle farmers only; Merriment and road closure levy; Radio and television licence fees other than radio and television transmitter ; Vehicle radio licence fees to be imposed by the Local Government of the State in which the car is registered ; Wrong parking charges; Public convenience, sewage and refuse disposal fees; Customary burial ground permit fees; Religious places establishment permit fees; and Signboard and Advertisement permit fees.
And to address the hitherto inherent conflict of fiscal responsibilities and powers among the three tiers of government, the Constitution classifies governmental taxation responsibilities and powers into exclusive, concurrent and residual lists.
The National Assembly, is empowered to issue legislation on the taxation of incomes, profits and capital gains, and on matters classified in the concurrent list—particularly those related to the division of public revenue. The State Houses of Assembly may prescribe the collection of any tax, fee or rate, or the administration of a law to provide for such collection by a local government council or any tax, fee or rate not expressly stipulated as being within the authority of the Federal government.
The State government is empowered to impose tax on all items in the concurrent list as well as residual matters but to the extent that such laws are consistent with those of the National Assembly. In sum, the Federal Government is limited to eight specific taxes while the State and Local Governments were restricted to 11 and 20, respectively. This may be due, in part, to declining and fluctuating earnings from oil and the need by various tiers of Government to raise own revenue.
A review of national tax policies Tax policy provides a set of rules, modus operandi and guidance for all stakeholders in the tax system. A good tax policy needs to satisfy both efficiency and equity criteria. Any tax policy is, however, continually subjected to pressure and changes. According to [ 22 ], the best approach to reforming taxes is one that considers taxation theory, empirical evidence and political and administrative realities and blending these with a good dose of local knowledge and sound appraisal of the prevailing macroeconomic and international situation to produce a feasible set of proposals sufficiently attractive to be implemented and robust enough to withstand changing times.
Whereas during the pre- Structural Adjustment Programmes SAP era tax policies were aimed at boosting government revenue; ensuring effective protection for local industries and equity in the geographic dispersion of manufacturing activities, the introduction of the SAPs in witnessed a shift in policy focus to using taxes to boost productivity and competitiveness of business enterprises; promoting exports of manufactures; and reducing the tax burden of individuals and companies.
The specific measures introduced included a review of custom and excise duties; reduction of company and income taxes; granting of a wide array of tax exemptions and rebates; introduction of capital allowance; expansion of duty drawback and manufacturing-in-bond schemes; elimination of excise duty; introduction of VAT; and monetizing of fringe benefits and increase in tax relief to low-income earners [ 23 ].
The policy in effect has shifted focus from direct taxation to indirect taxation. These strategies are aimed at encouraging investments, creating employment, increasing tax compliance and limiting opportunities for tax avoidance. Methodological approach 3. Review of the literature The relationship between taxation and economic growth has been widely studied.
Some of these studies suggest that tax policies have positive and significant impact on the rate of growth of output, while others have observed that there is an inverse relationship between the two variables, that is, tax policies have a negative and significant impact on growth. Haq-Padda and Akram [ 25 ] examined the impact of tax policies on economic growth using data from Asian economies.
They established that there is no empirical evidence that tax policies adopted by developing countries in Asia have a permanent effect on the rate of economic growth, a finding that is inconsistent with the endogenous class of growth models. The results of their study suggest that the relationship between aggregate output and the tax rate is best described by the neo-classical growth models because a higher tax rate permanently reduces the level of output but has no permanent effect on the output growth rate.
Consequently, they recommended an optimal tax rate to finance the budgets, with debt instrument used in financing transitory expenditure while permanent expenditures are to be financed through taxes. In a cross-country analysis, Ramot and Ichihashi [ 26 ] used panel data from 65 countries covering the period — to examine the effects of tax structure on economic growth and income inequality and established that company income tax CIT rates have a negative impact both on economic growth and income inequality.
They also established that personal income tax rate does not significantly affect economic growth and income inequality. Also, governments should reduce tax evasion, which, they averred, occurs among the highest income group and has potential to distort horizontal and vertical equity in income redistribution. Finally, they recommended that very high earners or the highest income group should be subjected to high and rising marginal tax rates.
The results of the study showed a satisfactory level of productivity of the Nigerian tax system. The author therefore, recommended for an improvement of the tax information system to enhance the evaluation of the performance of the Nigerian tax system and facilitate adequate macroeconomic planning and implementation.
Widmalm [ 29 ] in a study established that there exists a negative relationship between personal income tax, measured by average income tax, and economic growth, while corporate income tax does not correlate with growth at all. In their estimation, Lee and Gordon [ 30 ] found out that the concrete tax rates that greatly affect economic growth are the top statutory company income tax CIT rates. From their estimation, they established that only the CIT rate had a significant negative impact on economic growth in all their regressions by controlling the endogeneity of tax measures while the personal income tax PIT rate and its progressivity did not significantly affect economic growth.
The results of Lee and Gordon [ 30 ] are supported by the findings of Arnold [ 31 ] who established that the CIT and PIT rates reduce the economic performance of a country. Analogously, Padovano and Galli [ 32 ] argued that average tax rates lead to several biases and concluded that taxation has no impact on growth because of the possibility of high correlation with average fiscal spending.
Poulson and Kaplan [ 33 ] explored the impact of tax policy on economic growth within the framework of an endogenous growth model using data from to In this model, differences in tax policy can lead to different paths of long-run equilibrium growth. They used regression analysis to estimate the impact of taxes on economic growth.
The Granger causality shows that custom and excise Duties and value-added Tax granger causes federally collected revenue. For the purpose of this study, quasi-experimental research design was adopted. Among the different types of Quasi-experimental designs the Pre-Post difference in time design was considered appropriate for the study. It calculates the effect of a treatment i.
This method best suit the purpose of this work as the researcher divided the income generated through tax into two, based on the time electronic taxation was implemented in Nigeria i. For each group of the time series data, their means were compared to determine the extent to which the newly implemented system has caused a change.
Table 1. Paired sample t-test is a statistical procedure used to determine whether the mean difference between two sets of observations is zero. In a paired sample t-test, each subject or entity is measured twice, resulting in pairs of observations. The appropriateness of this method can be justified from the fact that each variable was grouped into two observations before e-taxation implementation and after e-taxation implementation. Data Analysis and Discussion of Results Table 2. From the result, Pre E-Tax revenue i.
Also, Federally Collected Revenue before the implementation of electronic e-taxation has a quarterly mean value of N2, The first column shows the pair of variables being tested, and the order the subtraction was carried out. Table 3. Based on the subtraction order, it implies that quarterly mean value of Pre E-Tax revenue was N Mean value of Federally Collected Revenue before e taxation was N Further findings revealed that the mean of Tax-to-GDP ratio before e taxation implementation was higher compared with the mean after its implementation with a mean difference of 1.
Analysis on the three pairs of data revealed that the implementation of electronic taxation has not improved tax revenue, federally collected revenue and tax-to-GDP ratio in Nigeria. However, the researchers are optimistic that in a long run, the benefits of electronic taxation will outweigh the cost based on the facts that most new innovations always have compliance challenges at the beginning.
Against this findings the following recommendation were made. This will no doubt increase the adoption rate by tax payers as mobile phones are being increasingly used. References  Organisation for Economic Co-operation and Development Rising tax revenues are key to economic development in African countries. Paying Taxes Report. World Bank Group. KPMG Africa blog. Revenue Statistics. Tax Revenue Statistics: Annual summary of collection from year Statistical bulletin.
A; Madison Publishers. African Journal of Business Management, p. The effect of online tax system on tax compliance among small taxpayers. University of Nairobi. Principles and practice of Nigerian tax planning and management. Ilorin: Batay Publications Limited. ISBN The Shorter Oxford English Dictionary. Clarendon Press, Oxford. The Macquarie Dictionary.
Macquarie Library, Sydney. Diffusion of Innovations, 5th Edition. Simon and Schuster. Power, Action and Belief. A new sociology of knowledge? Sociological Review monograph Law, J. Social Science Information 22 2 : European Journal of Business and Management. Journal of Poverty, Investment and Development. Journal of Policy and Development Studies.
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Instead, non tax revenue has taken over as the highest donor to the basket. Taxation is seen by Aguolu , as a compulsory levy by the government through its agencies on the income, consumption and capital of its subjects. To the leader of this group, Tosin I say thank you.
Governments use revenue for the development of the country, such as: construction of roads, bridges, build homes, fix schools etc.
From the results, it could be inferred that the change from one tax structure to another has not made any significant difference on economic growth rate in Nigeria. Before , CITA were characterized with increasing tax rates and overburdening of the taxpayers, and this induced negative effects on savings and investment, Odusola, This acknowledgement cannot be complete if I fail to appreciate my colleagues in the Association of Graduate Economics students A. Likewise, following the introduction of specific tax variables in the modeling, average tax rate and other tax variables were not significant in the determination of economic growth in Nigeria.
However, tax revenue declined in the s. Tax regulations and laws refer to the embodiment of rules and regulations relating to tax revenue and the various kinds of taxes. The OECD  defines GDP as "an aggregate measure of production equal to the sum of the gross values added of all resident and institutional units engaged in production plus any taxes, and minus any subsidies, on products not included in the value of their outputs. Ogun, A. However, the forgoing problems suggest several important conceptual and policy questions: Do tax structure matter in determining economic growth in Nigeria?