Importance Of Tax In Nigeria - 811 Words

The persistent decrease in the price of crude oil have led to the increase in the consciousness on the importance of tax as an important source of revenue. Tax is very pivotal in attaining growth and development in any known human society in that help provide basic infrastructures and social amenities for the people. Hence, the various tiers of government resort to the use of tax in ensuring they provide their social will to the people they governed. This academic write-up however focuses on the how tax and taxation system is geared towards growth and development in Nigeria using Lagos State specifically as a major point of refence. EMPIRICAL DISCOURSE The growth and development of Lagos state overtime had been as a result of its system of†¦show more content†¦Olusola (2011), described strategy as a game plan through which aims and objectives of an organization is achieved. They also defined strategy of revenue generation as the fundamental pattern of present and planned resource department, and environmental interaction that indicate how the organization will achieve its aims and objectives. However, for effective revenue generation, suggested the following strategies: I. Introduction of additional sources of revenue. II. Providing an incentive for extra efforts of the revenue generation staffs. III. Periodic raiding by officer of the revenue generation. IV. Efficient and effective collection of existing taxes. V. Public enlightenment and campaign that will educate the tax payer on the importance of prompt payment.Lagos State however over the years have adopted a similar approach and strategy highlighted above by Olusola (2011). A good tax system is not suitable for growth and development without a viable institution responsible for the collection of these taxes as well as management of revenue being generated by the State for sustainable development. In the case of Lagos State, the institution responsible for taxation system and its management in known as Lagos State Inland Revenue Service (LIRS). LIRS is the agency responsible for the management tax policies in the State. In relation to revenue administration of the State, while tax policy and tax lawsShow MoreRelatedThe Impact of Tax Revenue on Economic Growth1418 Words   |  6 Pagesthrough a well structured tax system (ogbona and ebimobewei, 2012). The vital role that taxation play in an economy cannot be overemphasized. Tax is a compulsory levy imposed by government or its agent on her citizens in order to raise revenue for the funding of economic activities. Nkoro and worlu, 2012 defined Tax as a fee charged or levied by a government on a product, income, or activity. If it is levied directly on personal or corporate income, it is called a direct tax. 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