AN EVALUATION ON THE LONGITUDINAL ANALYSIS OF TAX REFORMS AND REVENUE GENERATION IN NIGERIA (ECONOMICS PROJECT TOPICS AND MATERIALS)
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The tax system in Nigeria is made up of the tax policy, the tax laws and the tax administration. All of these are expected to work together in order to achieve the economic goal of the nation. According to the Presidential Committee on National tax policy (2008), the central objective of the Nigerian tax system is to contribute to the well being of all Nigerians directly through improved policy formulation and indirectly though appropriate utilization of tax revenue generated for the benefit of the people. In generating revenue to achieve this goal, the tax system is expected to minimize distortion in the economy.
Other expectations of the Nigerian tax system according to the Presidential Committee on National tax policy (2008) include;
· Encourage economic growth and development.
· Generate stable revenue or resources needed by government to accomplish loadable projects and or investment for the benefit of the people
· Provide economic stabilization.
· To pursue fairness and distributive equity
· Correction of market failure and imperfection.
In an attempt to fulfill the above expectation, the national tax policy is expected to be in compliance with the principle of taxation, the lubricant to effective tax system. The Nigerian tax system has been flawed by what is termed multiplicity of tax and collecting entities at the three tiers of government levels – Federal, State and Local government (Ahunwan, 2009).
According to the report of the presidential committee on National Tax policy (2008), “The National tax policy provides a set of rules, modus operandi and guidance to which all stakeholders in the tax system must subscribe”. Tax policy formulation in Nigeria is the responsibility of the Federal inland Revenue Services (FIRS), Customs, Nigerian National Petroleum Corporation (NNPC), National Population Commission (NPC), and other agencies but under the guidance of the National Assembly i.e. the law making body in Nigeria (Presidential committee on National tax policy, 2008). Suffice it to say that if there must be any effective implementation of the Nigerian tax system or attainment of its goal, the use of the national tax policy document remain absolutely essential.
