1.1Background of the Study

Taxation is a compulsory levy imposed by the government on the incomes of taxpayers in a geographical territory in order to defray the expenses of governance. This implies that anybody that generates income must compulsory pay taxes. There are different types of taxation, they include   the personal income tax, company’s income tax and petroleum profit tax, value added tax and the capital gain tax. Recently, the issue of capital gain tax in the Nigerian has come to the fore. Government from time to time, has responsibility of receiving the tax position as a component of the subsisting fiscal policy for the purpose f meeting given objectives, however each review naturally deceits mixed reaction from the stakeholders.

The important of taxation and property rating lies primary in its ability to raise capital formation for development and growth of the economy and also in assisting stabilization and effective redistribution of income (ICANI, 2009).

1.2 Statement of the Problems

          Property rating is a local form of taxation received on land and building. The proceeds of which are used to fund local government capital projects. It is obvious that property rating is a major source of local government revenue for capital  project anywhere in the world.

Nevertheless, the information available I the rating and valuation unit of Uyo capital city shows that the amount anticipated to be generated from rating during a fiscal years is not always realized.

1.3 Aims and Objective of the Study

The aim of this research is to identify the problems and prospects of property rating  and following objectives will be identified:

  1. To find out who is in charge of the tax collected.
  2. To find out whether taxation has impacted on revenue generation in Uyo or not.
  3. To find out the various forms of taxes in the study area.
  4. To find out the problems militating against effective tax administration in the area.

1.4 Scope of the Study

From the following discussion, the research study focus on the administration of capital gain tax in Nigeria, it also examine  problems an prospect, effect on economy, and income generation in Nigeria, using Uyo as the case study. The period covered by this research enable the research to be reliable.

Gross domestic product of Nigeria covering the period 2002-2011 was obtained to evaluate the extent that taxation has contributed to the steady growth in gross domestic product in Nigeria.



1.5 Significance of the Study

          The research study will throw light on  the problems of capital gain tax administration in Uyo. The special emphasis on the Federal Board of Inland Revenue (FBIR) will highlight peculiar problem and difficulties in administering the capital gain tax.

Finally, this study will be of great significance to schools and students, it will serve as a reference point for future researcher who will want to research more on the topic.

1.6Research Questions

  1. Who is in charge of tax collected?
  2. Has taxation impacted on revenue generation in Uyo?
  3. What are the various forms of taxes in the study area?
  4. What are the problem militating against effective tax administration in Uyo.