THE BENEFITS OF TAX

Ever wonder where our taxes go? Ever wonder how the government would finance the public utilities and amenities that we demand for common good? Well taxes are the income that government gets to take care of all our social and community needs. So, how does paying taxes benefit us? Let’s look at some of the benefits of paying tax.
(1) National Development: National Development in our context therefore, means that all components of the Nigerian Federation will have equal or near equal opportunities and near even resources, to grow and develop at their own pace. It also means that all citizens of Nigeria should have opportunities to actualize their potentials and maximize their God given talents in a manner that constantly emphasizes and builds on the unity of Nigeria as the bedrock. National development is thus a continuum in the life of Nigeria, where we the citizens and its residents, dream dreams, actualize our dreams, when Nigeria continually conquers its environment, provides most of all the economic, social, technological and political needs of its people, on its own terms. In short, national development must give Nigeria sustainable and continuous positive social change. National Development will also entail, I envisage, a condition where Nigeria constantly protect its own people, and relates with the world, on its own terms.
A steady flow of revenue that would enable Nigeria to lay the foundation for stability and relative self -sufficiency would help the country’s quest for national development. Beyond revenue, a country must also be able to prioritize its expenditure pattern and its national plan in a way that will give the country the best from whatever resources the country has. Though the following is not exhaustive, development would involve the availability of the following: a) Social infrastructure such as in education and health with emphasis on continuing education and constantly improving our health care b) Physical infrastructure to enable private sector investment: that is energy, transportation, security of life and property c) Access to Property, Capital, and Opportunity for Individual and Communal Development d) Provision of social amenities for the young, the disadvantaged, the physically challenged, the old and the dead e) Security of Lives and Property .
SPECIFIC BENEFITS: Nigeria as a country and indeed all socially responsible and law abiding individuals, groups, organizations and corporate citizens will derive valuable benefits from imbibing a culture of tax compliance. The benefits derivable include but are not limited to:
• Providing sustainable finance and funding for governance, public and social services and economic development.
• Promoting civic responsibility, patriotism by citizens and social responsibility by corporate citizens.
• Stimulating priority social and economic activities and sectors while discouraging less preferred ones.
• Bringing about the redistribution of wealth and bridging sharp disparities in living standards.
• Giving taxpayers the moral and legal right to demand for (thereby engendering) a culture of accountability.
• Serving as a gauge for measuring the level, growth and health of economic units and economic activities.
• Individuals and corporate organizations are conferred with definite benefits, rights and privileges in the system based on their tax compliance status.
• Tax compliance enables law abiding citizens to avoid the consequences, penalties and sanctions of non-compliance.
www.firs.gov.ng/