Comments on NIGERIAN CURIOSITY: TAXES - ACCOUNTABILITY & REVENUE IN NIGERIA

As long as the citizens paying these taxes (which ...

2009-11-19T10:34:05.047-05:00

As long as the citizens paying these taxes (which forms a great part of the IGR) can see (& by implication feel) the positive outcome, no one will complain.

Implementing a tax system now is like giving them ...

2009-11-18T13:47:14.469-05:00

Implementing a tax system now is like giving them a pat on the back for wasting all that oil money.

Nigerians cannot be taxed right now, we don't even make enough as it is.

The Nigerian government should be forced to produce all the missing oil revenue and put THAT to its proper use.

I REFUSE to pay tax to the Nigerian Government be ...

2009-11-18T13:44:42.815-05:00

I REFUSE to pay tax to the Nigerian Government be it state or federal.

Why? Because in Federal Government Secondary schools people sit on the floor... or ten people share one bench and the teacher never comes.

Because Nigerian undergrads have no clear idea of when they are going to graduate (if ever) because everyone is striking because they haven't been paid.

Because nobody in Nigeria flips a light switch with the expectation of seeing light.

Because everybody in Abuja knows somebody who knows a Hausa water boy (the ones that carry jerry cans in trolleys)

Because the potholes in the road on the way to Anambra are bigger than the cars.

Because that idiot Yar'Adua spends most of his time plotting how to sue newspapers that write the TRUTH about him instead of running the country.

And most importantly of all, because the presence of all my reasons proves that the Nigerian government has FAILED to manage all the money it made from oil. If the Nigerian government cannot manage the mountainous oil revenues that it has received ever since we discovered oil and use them to develop the country then bloody why in the seven hells should I hand over even one kobo of money that I gave my sweat and blood for?

They can implement their tax all they want. I will NOT pay. And I will tell them why I will not pay.

Until my tap runs 24-7. until there is light permanently, until our schools are useful, until the roads are safe, they can stick their tax collection paper where the sun doesn't shine.. up my ass.

Hello, I just finished writing a comment and whil...

2009-11-18T07:45:11.590-05:00

Hello,

I just finished writing a comment and whilst previewing after fiddling with the restricted profile list, I lost my long comment.

Agrgh!

If inspired again, I would try again. :)

Rrgards,

Akin

Taxes. Hehehe Isnt this the reason why a lot are r...

2009-11-18T06:17:17.037-05:00

Taxes. Hehehe Isnt this the reason why a lot are running back home? So they dont pay taxes?

I hope its taken seriously, hopefully not to break the camel's back, but to increase the country's revenue

Nice write-up. I just wanted to make a clarificati...

2009-11-18T06:03:44.084-05:00

Nice write-up. I just wanted to make a clarification on the tax structure in Nigeria. The state governments cannot impose an income tax on its citizens unilaterally.

There are basically three types taxes that individuals pay.

The first is the PAYE tax which is a progressive tax that tops out at 20% of taxable income. This is the tax that accrues to the state government, and I'm sure the Comrade Governor would like to increase it but there is no political will for that as it is centrally determined.

The second tax is the tax on investments. I'm not sure who gets this, but I think it is a national tax. This is the 10% withholding tax on dividends and interest income. There is a capital gains tax on property (that the buyer almost always pays). However there is no capital gains tax on securities like stocks and bonds.

The third tax is the VAT which is paid by individuals but collected by the businesses on behalf of government. The proceeds of this generally go to the state though some of it is shared to the chagrin of states like Lagos.

The main issue for a lot of the states is that the company taxes (CITA) go to the Federal purse. This is why they try to slap as many levies as they can on businesses.

There is a Joint Tax Board that has been set up to harmonise the various taxes at Federal, State and Local levels, but this has been frustrated to some degree by the states and local governments in order to be able to keep taxing anyhow they like. Lagos is a prime example of this overcharging.

IGR is a necessary goal, but most governors are trying the shortcut version which is raise taxes as high as possible on the current people you can collect from. The good parts of the Lagos model is a blueprint. Work on increasing the tax base by collecting the minimum tax from people to get them on the rolls. Then build the local economy and benefit from the increased taxes that this brings.

Sorry for a comment that was longer than the post :D