What Is Taxation As An Instrument Of Economic Development In Nigeria

In order to acquire this, tax policies should revolve around the classical theory behind the six characteristics of tax economic growth – 1) accumulating capital, 2) keeping governmental small, 3) opening the economy to trade and foreign investment, 4) respecting property rights/rule of law, 5) avoiding unnecessary government regulation in the private sector, and 6) investing in human capital. Accumulating capital comes into place because if taxes on earnings continue to rise then those taxes placed on the individual’s use of capital would increase as well which would trigger economic growth. A small government will help towards economic growth because the purpose of a tax system is usually to help provide income to the government. Therefore, if the government were small it would not divert some of its resources to private sectors. Opening the economy to trade and foreign investment is another way that can stem economic growth because it can stimulate tariffs and certain restrictions on trade and investments. Fourth, respecting property rights/rule of law can trigger economic growth because if one is restricted from power over taxation on property it can lead to growth. Another way it can lead to growth is from avoiding unnecessary government regulation in the private sector. This includes behavioral tax which is a tax imposed to shape a consumers behavioral decision. For example, placing a higher tax on tobacco and cigarettes can lead to improve one’s health and lifestyle. As we know, certain merchandise currently have higher taxes, i.e. cigarettes. Creating a higher tax on cigarettes and other commodities can lead to an incentive for fewer individuals to buy the product. Smoking causes many health related problems, like heart conditions, cancer, and ultimately death. There are hundreds of cases daily with these effects and it is highly likely that the

British Parliament declared that the crown and the British parliament had the right to make laws that affected the colonies so as to maintain order. The mother country also had the right to maintain a military presence over the colonies if it was so required. Concerning taxation, Jenyns states that the colonists’ view that taxation must be preceded by the power to elect representatives is unfounded, citing the example of towns in Great Britain who did not have explicit parliamentary representation but are still taxed (Para. 2). Also, the document refutes the notion that taxation can only Thus, with the consent of the people. Therefore, Parliament had the power to impose taxes on the colonies and additionally held the right to use these taxes.

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Taxation is by which governments finance their expenditure by requiring costs on corporate entities and citizens. The government uses tax to discourage or encourage certain economic choices. Example, reduce in taxable personal or household rent by the amount paid as interest on home contract loans results in greater construction activity and generates more jobs. An essential function of taxation is to support government expenditures. Different justifications and explanations for taxes have offered throughout history. New taxes were used to support ruling classes, raise armies and build defenses. Often, the authority to tax stemmed from a divine or supranational right. Taxes are significant source of revenue, and its collection is one of the most important functions performed by the state

This document is authorized for use only in Financial Management23 by Dr. Raj, at Institute of Management Technology - Dubai from January 2015 to July 2015.

* Site value rating: This is a tax on unimproved capital value of the site. The tax was introduced to encourage owners of undeveloped land to put them into immediate profitable use.

Assistant Professor, Department of Business Administration, College of Science and Humanities Studies, Prince Sattam Bin Abdulaziz University, Al-Aflaj, KSA

All over the world, governments undertake huge public expenditure on behalf of their citizens for the provision of basic amenities and other social services. To meet up with these responsibilities, governments thus require substantial amount of funds. Among the various sources from which can generate income, taxes are the most important and most reliable; contributing much more than any other source. A tax therefore, is a compulsory levy imposed by the government on the income, profit or wealth of an individual, family, community, Taxation is the inherent power of the state, exercised through the legislature, to impose financial burdens upon subject within its jurisdiction for the purpose of raising revenues to carry out the legitimate duties of government (Kenned & John, 2014)

Taxation can be traced back to the colonists, when they were severely taxed by Great Britain on multiple items from tea to business documents that were mandatory to be stamped by the Stamp Act. Throughout the history of the United States, the tax system has evolved dramatically. Initially tariffs, or taxes, provided the primary source of revenue for the government. Consumption and Income taxes were announced years apart from each other. Consumption taxing was first developed in 1974 by William Andrews. While Income taxing was first developed in 1894 and was passed by the Wilson-Gorman tariff. Both taxes were made for completely opposite reasons. Income taxes were originally made to help pay for any revenue that would be lost by tariff reductions.

Are you aware that taxes have been around since the Ancient Egyptian, Roman, and Mesopotamian times as early as 3000 B.C.? (“Taxes in the Ancient World” U. Penn Almanac). Taxes are a crucial part of society’s economic functions as a whole. Taxes help us generate money to help build new roads, provide us with protection through services such as law enforcement, and help improve public education institutions. In other words, taxes help the United States create value for its citizens. As we all are aware, no system is perfect and there are times when our economy isn’t doing so well and also times when it’s really booming. The main subjects of discussion are: tax morale, wealth distribution and taxes, tax loopholes, off shore tax evasion, and possible reformations. What this paper analyzes and discusses is current economic issues that involve taxes and possible reformations to correct them.

Taxation, is an involuntary fee levied on corporations or individuals that is enforced by a level of government in order to finance government activities.’ Taxation is one avenue of income to the government which shall be used to support nation development or pay for government’s operational expenditure to run the country.

BEING A RESEARCH PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTING, FACULTY OF MANAGEMENT SCIENCES, UNIVERSITY OF ABUJA, ABUJA, NIGERIA

The Nigerian economy has several activities sectors which include agriculture (crops), livestock, forestry, fishing, manufacturing, crude petroleum mining and quarrying, utilities, building and construction, transport, communication, wholesale and retail trades, hotels and restaurants, finance and insurance, real estate and business services, housing, producers of government services and community, social and personal services. However, with the advent of the crude petroleum sector and its attendant boom in the international market, all other sectors of the Nigerian economy have experienced serious neglect by the government, thus resulting to an unbalanced economy.

In the partial fulfillment of the requirement of Master of Business Administration (M.B.A.) Program (2002-2004) Hemchandracharya North Gujarat University, Patan.

MSc PROGRAMME DEPARTMENT OF BANKING AND FINANCE FACULTY OF MANAGEMENT SCIENCE SCHOOL OF POSTGRADUATE STUDIES ANAMBRA STATE UNIVERSITY