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Seun (m)
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The Nigerian Gernment is finding it hard to convince more Nigerians to pay tax. This is due to the widespread corruption in the government as well as the lack of basic public services - education, electricity, water, and good roads - which Nigerians have to pay for out of their own pockets. Most Nigerians, other than those who work for the government or blue chip companies, where income is deducted at source via the ' Pay As You Earn' system, practice Tax Evasion by under-reporting their income. Mrs. Ifueko Omoigui, Federal Inland Revenue Service Chairman, says "we will also work with the Economic and Financial Crimes Commission to get those who are flouting the law [on tax]." Please Read Are Nigerians ready to pay tax? on BBC News. Whats your opinion on taxation in Nigeria? Do you pay the correct amount of tax in your business or personally? What about the FIRS threat to use the EFCC to deal with those who evade tax? Do you think government is justified to demand tax from people when they are not able to provide us with the basic amenities? When our government is so corrupt that governors are being arrested for money laundering? |
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razor (m)
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A typical Nigerian does not want to pay tax cos he can't see what the tax is used for.
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kazey (m)
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If i am in Nigeria, I would try to evade it, as much as possible.  Why should I pay ? when at the end it would end up in the "Ole's" pocket? |
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EzehM (m)
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Another catch 22 situation. I think the public will possibly demand more accountability from Government officials if they paid tax, just like they do here in the UK. I also think it will break down the illogical thought train that most Nigerians have when they classify certain things as 'na Government money'.
The benefits of Taxation can hardly be overlooked...
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diakim (m)
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The threat by the FIRS to use EFCC to deal with tax evaders is an empty one. The threat can only be applied to corporate organisations and their employees.
When the government does not know the numbers and the particulars of citizens living in a particular location, how can the government then enforce them to pay tax? If the government sends tax collectors out to the streets and bus stops, those tax collectors end up enriching themselves through bribery and extortion.
For now, let the government focus the matters of tax on corporate organisations and their employees, small scale businesses and the artisans, and let the government leave the poor pepper and groundnut sellers who are working 18 hours a day to scrounge for living and survival.
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obong (m)
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lagos came up with a pretty smart way to get people to pay tax. even those in the informal economy
The Computerised Tax Collectors
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This Day (Lagos)
OPINION
May 13, 2005
Posted to the web May 16, 2005
Kehinde Soremekun
Lagos
How did Lagos State Government increase its monthly
internally-generated revenue from N600 million to a remarkable N3.5
billion and in so doing survive without the obligatory local council
statutory allocations from the federal government? Very simple. It
introduced an electronic revenue collection, monitoring and management
system which has banished the unwholesome features associated with
manual revenue collection and monitoring.
In spite of this unprecedented success, very little is known about
Alpha Beta Consulting (ABC), the company contracted by the state
government to set up, implement and manage the system, and the
company's boss. ABC has over 500 highly qualified literate IT staff
and is headed by Mr. Olumide Ogunmola, a 1979 University of Ibadan
graduate. Ogunmola's pedigree is deeply rooted in his experience on
tax matters with blue chip companies especially in the UK where he
worked for several years. They include Hacker & Young and Deloitte &
Touche. He has an MBA (Finance) from the U.S. International
University, California and is a Fellow of both the Institute of
Chartered Accountants in England and Wales and the Institute of
Chartered Accountants in Nigeria. Ogunmola is an international tax
expert and a certified SAP FICO consultant having trained with the SAP
Partner Academy in Canada.
He dismissed reports indicating that state revenue is collected
directly by his company. "Contrary to reports, we do not collect
revenues directly and do not assess companies or individuals
concerning their tax liabilities. What we've done is to provide the
technical infrastructure to ensure the state maximizes its revenue
generation potential" Ogunmola said. This initiative by ABC has been
commended by the World Bank which conducted an extensive assessment of
the project a few months ago. The World Bank assessed ABC's work as
part of preconditions for assisting the state government with
development grants.
Ogunmola admitted that the old tax system was inefficient and was
consequently incapable of bringing potential tax payers into the tax
net. With the system put in place by Ogunmola's ABC, the state
government is optimistic the figure could rise to an unprecedented N10
billion monthly revenue due largely to what an official of the Board
of Internal Revenue called "ABC's scrupulous on-line tax management."
The optimism also derives from plans to bring into the tax net workers
in the informal sector, 95 per cent of whom analysts say have never
paid taxes. "There is a substantial revenue base in the informal
sector," Ogunmola enthused. ABC's success has generated interest not
only from the public sector in Nigeria, but also from some countries
in the West African region.
But despite the strong optimism, the state government realizes the
importance of dealing with fears and presuppositions which help
strengthen the informal sector workers' believed aversion for taxes.
So in the past few weeks, there has been a series of road shows in
some parts of Lagos aimed at creating awareness for the Modified Tax
Clearance Certificate (M-TCC), designed for traders, artisans and
similar class of workers in the informal sector. How has the response
been? "Given their inclination to evade tax, I must say we have so far
had a very encouraging response," says Mrs Olufunmilola Hassan, the
state's personal income tax co-ordinator for the informal sector,
during a tax rally held recently at the Lagos Island Local Government
premises. She told the large audience comprising traders and artisans
and transport workers that the government has generated about N8
million from the informal sector since the exercise commenced last
September. Similar tax rallies have been held in locations in Alimosho
and Ikorodu. There were several questions such as what the new tax
mode would entail and if traders with a meagre income base will be
exempt from paying taxes. Hassan explained that the rate is largely
affordable and would not stifle businesses of low income earners: "The
minimum tax an artisan or transport worker is expected to pay annually
is just N2,500," she said.
Upon payment, an electronic tax clearance card which, according to
officials can be accessed from anywhere, is issued. The tax clearance
cards comes in two forms: The Electronic Tax Clearance Certificate
(designed for government establishment and private organisations that
operate the Pay-As-You-Earn sytem); and, the Modified Tax Clearance
Certificate (meant for informal sector workers)
Relevant Links
West Africa
Nigeria
Legal and Judicial Affairs
Economy, Business and Finance
ICT and Telecom
Listing the benefits of the new tax mode, officials say the state
government has been able to eradicate the era of fake and counterfeit
tax certicates, as well as forestall the diversion of revenue meant
for government coffers. "These cards are so designed that it can be
verified online via the internet. Once the micro-chip makes contact
with the machine, the owner's personal tax profile would be revealed,"
an official of Alpha Beta explained. This new initiative has been
commended by the World Bank which conducted an extensive assessment of
the project a few months ago.
But, ultimately, the greatest benefit lies in the boost the initiative
has added to Lagos State government's internal revenue generation
profile. Analysts say the state's impressive IGR is a major factor
that has propelled immense infrastructural development, and also help
the government fund its councils since their statutory allocation was
withheld by the federal government.
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legs (f)
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well people there u have it a typical answer supplied by kazey; apparently everybody go dodge am. So perhaps the question shouldnt be whether Nigerians are ready to pay tax but whether Nigeria is actually ready to collect tax
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hot-angel (f)
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How do u pay tax when you "price" every good/product you buy. there's no fix price for every product. You call something 400 naira, and you see people pricing and bringing it down to 150 naira. In fact.. tax is just an understatement.
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obong (m)
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hot -angel, my post (though long) has some answers. it sets a cetain tax regardless of income, so it covers everyone. the tax you are talking about is sales tax, and we may be able to catch all of it just yet.
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hot-angel (f)
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I really didn't read your long post. I dunno if u've said wat i said.  |
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Ka
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Are Nigerians ready to pay tax? What a question.
Nigerians pay tax from the time they wake up to the time they go to sleep.
When a Nigerian sets out for her shop in the morning in her car, she pays a 'special security' tax to the megadi who guards her street.
Then on the way to work, she pays a 'welfare tax' to the beggars who accosts her at traffic jams.
Before getting to work, she pays a 'morning general security' tax to the policemen who stop her at a checkpoint.
When she gets to her shop, she finds that the local government have slapped a 'regularisation and acclimatisation' levy on her.
At midday, she receives a call from her son's school that he should bring a 'school maintenance' tax tomorrow to school.
Later on in the day, she is unexpectedly disconnected from her electricity supply. When she goes to PHCN office, she is told that they are refurbishing their equipment, and she will have to pay an 'infrastructure upgrade' levy.
Towards the evening, a state waste dispersal disposal lorry calls round to pick up the garbage in her area. However, she has to pay a 'garbage collection' tax first.
Thoroughly tired by now, she heads home... but she has to stop on the way to pay an 'evening general security' tax to another set of policemen and and a 'harassment avoidance' tax to a set of hooligans.
Just before she reaches home, she pays a 'road repair' tax to some young men filling up the roads with sand and rocks.
And that's why Nigerians don't want to pay any more tax!
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WesleyanA (f)
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nigerians better be ready to pay tax. that's the only way to keep the revenue coming. you can't rely on oil. it's going to be tough but it can only get worse to get better.
but first of all, it needs a good strong, strict and organized government. IOW, no corrupt, stupid (fake degrees) officials.
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kamakula
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the rule of law seriously depends upon order.
If Nigeria wants to collect a tax, it must first be able to enforce the law.
To enforce the law, it must pay police well enough that they do not need to break it.
Once you can guarantee law enforcement, then you can provide services whose provides cannot depend upon bribes.
Why, because if someone asks for a bribe, you report him to the police and the police come and arrest him.
In order for any system to work, you need the highest level of authority to be immune from becoming compromised.
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Ka
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the rule of law seriously depends upon order.
If Nigeria wants to collect a tax, it must first be able to enforce the law.
To enforce the law, it must pay police well enough that they do not need to break it.
To pay the police enough, Nigeria must be able to collect tax.
To collect tax, it must be able to enforce the law on payment of taxes.
To enforce the law, it must pay police well enough that they do not need to break it.
To pay the police enough...
(repeat until you're tired)
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kamakula
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you don't have to go ad infinitum, all you need is one person with sufficient authority to get it done, you don't need to change anything else to effect that change.
I know one main problem when looking at Nigeria is that our problems are so interrelated. But, you can forcibly solve one problem and leave the others alone (temporarily). Once you have something working right, it will help you to attack another individual problem.
We have to take things little by little - over the course of a couple lifetimes to make any good changes.
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skima (m)
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Why would you work 18 hours + and pay some people who use your money to enrich themselve?
Its wen ppl see changes dat they will be motivated to pay taxes.
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skima (m)
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And more so; Where do u expect a jobless person to pay tax? unemployment is growing geometrically... so will tax evation will grow.
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kamakula
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if you don't have income - you don't pay any taxes - thats not tax evasion.
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WesleyanA (f)
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taxes are paid according to your income i think. the rich people should have to pay A LOT of tax. Nigeria should make them  |
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I.B. (f)
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How can nigerian be ready to pay tax when inflation is skyrocking? Come on lets be resonable here. Nigerians can't afford to pay tax until more than 80% are employed. Upper, middle & lower class should pay tax. And the whole world knows that we don't have such classes in nigeria. The government have to start the works. Privatization has to increase so the avg nigerian is put to work. Until then, am sorry the subject is ruled out.
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WesleyanA (f)
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TAXATION RULES!!!!!! more revenue = less inflation. . . . i's going to be tough but it only gets tough to get better.
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otokx (m)
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NO WAY!! do you want to add insult to injury?
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joftech (m)
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It's not that i am not a law abiding Nigerian, but when you look at the way they slam tax on people you will cry. Some months ago some stupid local government tax agents came to my place to demand for tax. I was really angry for the following reasons:we just start business, there's no support from government to start my business, i run on generator for 20 hours, we have to hire one OPC member as security guard during the night (he eventually broke into one of the shops he was suppose to watch over anyway) and so on. I told them all these, and that right now am not making money for tax payment. The next thing those bastards told me was that i should stop working if i find it difficult paying all these extra bills. At the end of the day i paid the money but i ensured that he got half of it. So is that a tax? IMHO, a tax is supposed to be fixed (based on a percentage of my profit), anyway i made sure i get the best bargain by "pricing" it down. But at the end of the day i was angry with myself because i knew the money will eventually end up in those "bastard's" pocket. Last month too, mens from FIRS came knocking. They just gave me an abitrary figure as my tax, i wonder how they managed to arrive at that amount, anyway i refused to pay such amount. And am ready to slug it out with them. The government is robbing/419ing Nigerians by demanding/collecting tax from us. One thing i know is that am not a Tax evader, but i know i will continue to be a Tax Protester as long as taxes and our minerals revenues kept going into some peoples Swiss and London accounts. Nigeria can only improve if Nigerian public office holders will be more accountable in their spending of public funds.
Nigerians should also be forced to pay taxes too, that way they will know how to demand for proper accounting from those they are entrusting their money to.I think the Minstry of Finance should setup something like this too Simplify, you can read more about it from here. |
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kodewrita (m)
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I think you chose the wrong title for the topic, it should have been
Are you ready to pay taxes ?
me? definitely not. i will pay nepa bills and all other bills but i will search for all the legitimate ways to avoid spending money on the government and more on my pocket. I will ensure that i pay the minimum LEGALLY POSSIBLE amount of money.
you ask me how i expect nigeria to develop if i don't pay taxes, well let them use the money realised from oil to develop infrastructure that i will be motivated to pay taxes for. You obviously don't expect me to pay taxes for intermittent supply of power(we provide our own power) , non-existent water supply(same as for power), bad roads, virtually no security. Don't make me laugh.
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Labans (m)
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yes of course nigerians are ready and willing to pay tax, provided they have job or business running.
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mo wapa (m)
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I will pay tax as soon as there are decent primary school with cafeteria and decent buys and girls bathroom as opposed the the pit Latrine in most govt run schools
i will pay tax as soon as every govt official involved in an accident or nearing death is not flown abroad and is treated in the same no medicine, no light and no anesthesia we call hospital
I will pay tax as soon as an average comm of police does not have access to three and more official cars, while there is no Vehicle to patrol the street
I will pay tax as soon as i know there is level playing field in the award of contract and not totally inflated
I will pay tax when the police are paid a living wage
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WesleyanA (f)
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I will pay tax as soon as there are decent primary school with cafeteria and decent buys and girls bathroom as opposed the the pit Latrine in most govt run schools
i will pay tax as soon as every govt official involved in an accident or nearing death is not flown abroad and is treated in the same no medicine, no light and no anesthesia we call hospital
I will pay tax as soon as an average comm of police does not have access to three and more official cars, while there is no Vehicle to patrol the street
I will pay tax as soon as i know there is level playing field in the award of contract and not totally inflated
I will pay tax when the police are paid a living wage
that's what taxes are used for. you can't get good public schools, roads, hospitals, worker salaries without paying taxes. it's a catch-22 then i guess. lol |
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otokx (m)
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only foreigners and multinationals should pay tax in hard currency.
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alabiyemmy (m)
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Nigerians are the dumbest in the whole wide world, but we think we are the smartest and the best. We dont even know the benefit of paying tax, yet we want the country to be better. We are the dumbest race on earth, it is in Nigeria you will see educated men and women drive on the wrong side of the traffic, it is in Nigeria you will see educated men and women disobey rules and regulations, it is in Nigeria you will see people twist rules and regulations all in the name of being smart, nope - I call it being dumb.
Tax paying is part of civic requirement and it is not to be debated, most of us live outside the country and see what is going on here, it is because tax are payed efficiently, please lets wise up as a people and lets stop thinking we are the best to ever come out of creation. Ha!
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dcdal
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"Nigerians are the dumbest in the whole wide world, but we think we are the smartest and the best. We don't even know the benefit of paying tax, yet we want the country to be better. We are the dumbest race on earth, it is in Nigeria you will see educated men and women drive on the wrong side of the traffic, it is in Nigeria you will see educated men and women disobey rules and regulations, it is in Nigeria you will see people twist rules and regulations all in the name of being smart, nope - I call it being dumb.
Tax paying is part of civic requirement and it is not to be debated, most of us live outside the country and see what is going on here, it is because tax are payed efficiently, please lets wise up as a people and lets stop thinking we are the best to ever come out of creation. Ha!"LOL 
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davidylan (m)
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"Nigerians are the dumbest in the whole wide world, but we think we are the smartest and the best. We don't even know the benefit of paying tax, yet we want the country to be better. We are the dumbest race on earth, it is in Nigeria you will see educated men and women drive on the wrong side of the traffic, it is in Nigeria you will see educated men and women disobey rules and regulations, it is in Nigeria you will see people twist rules and regulations all in the name of being smart, nope - I call it being dumb.
Tax paying is part of civic requirement and it is not to be debated, most of us live outside the country and see what is going on here, it is because tax are payed efficiently, please lets wise up as a people and lets stop thinking we are the best to ever come out of creation. Ha!"LOL This goes down as perhaps the dumbest post i have ever come across. Nigerians do not pay tax? What of the taxes being collected illegally from those who work in the civil service? what about the huge taxes paid by our multinational companies? Who else do you expect to pay taxes? Taxi drivers, peper sellers, vulcanizers, hawkers, molue conductors, phone booth operators? Where are all the taxes we've been paying for 40 years been going? Is it not because governments abroad are accountable to their people that they are eager to pay tax? Have you asked yourself why those in government are the ones evading tax the most and yet they scream at pepper sellers and vulcanizers to pay taxes? In Europe and America, we see what taxes are doing, can we say the same of Nigeria? Would you be willing to pay taxes if you had to dig your own borehole, maintain your personal NEPA (er generator), build your own roads, pay for your personal vigilante group, travel to America for monthly check-ups, paid $10,000 per yr to maintain your child in a foreign school? Of what use is the government? Thousands of civil servants pay for housing loans and yet live in rented houses, many pay for car loans and trek to work, what about the National Health Insurance Scheme? That you can accuse ALL Nigerians as being dumb for "refusing" to pay tax is indicative of your own low ability to reason! Would we refuse to pay taxes if government provided us with basic social infrastructure? Why should we pay more taxes when those in power merely pocket the rest and stash them in Swiss banks? What about pensioners who die on queues waiting for non-existent pensions? When we drive on the wrong side of the law, it is because our government officials themselves do not respect those same laws! Yes you live outside the country but that is no reason you should lack the basic ability to reason! To call ALL Nigerians dumb is unfortunate and unacceptable. |
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Ndipe (m)
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Alabiyemi, your invectives on Nigerians as being dumb is very unacceptable. In as much as Taxes are the civic duties of a citizen, it only works in developed countries where the taxes are put to use for the benefits of the citizens. Not in Nigeria, where there is no accountability. To squeeze out taxes from the common man, I am quite curious, is there any plan of putting their taxes to good use? In the first place, the government has not been able to explain why our country, Nigeria, experiences petrol shortages, which is embarassing to say the least, because Nigeria is an oil producing country. The Nigerian government can't even account for the oil revenues that has been siphoned into Swiss bank at the detriment of the common masses.
It is always heartbreaking seeing people back home, struggling to make ends meet, while our government are insulated from the causes of the common man. I would definitely veto the idea of forcing taxes on the common man. Let the oil revenues, the stolen money from Abacha and his cronies be used in developing the country, repairing roads, creating jobs especially, overhauling NEPA and water board and for just one moment, leave the common man alone.
It is not a crime to be poor!!!
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