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Paying Taxes In Nigeria, Can It Improve The Economy? - Politics - Nairaland

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Paying Taxes In Nigeria, Can It Improve The Economy? by damola1: 4:27pm On Apr 10, 2008
I push forward the motion that paying taxes in Nigeria by Nigerians will have a positive Geometric Growth rate for the success of the Nigerian economy.

Why?

Over the years, the followership in Nigeria have greatly critized the leadership for alledged corruption and embezzlement of public funds which has adversely affected the growth of the economy, however, a larger percentage of the followership has done little or nothing to improve the situation which has made the leadership not only gather more strength and power to continue committing these alledged attrocities but also enough time to pass the mantle to their families and friend turning the Nigerian state to a family affair. But we all know talk is cheap, why have the followership only said this and that and have not really done much to fix the situation.

I am of the opinion that it's because the alledged embezzled fund was and still is free lunch, no man's property, that's why the followership have done little or nothing, the main source of income for Nigeria is from crude oil, which is a free natural resources. If however the funds embezzled belong to the people, there's a great tendency that they'll react more and fix the situation.

Case Study:

We all know the success of a country is directly connected to the success of its people. If in a particular Local Government Area (LGA), e.g. Ikeja, the capital of Lagos State, at least 95% of Nigerians in this LGA paid their taxes regularly. These levies are to be used to improve the economy of Ikeja (LGA), provide better health services, road and the basics and some crooked government official, say a councilor embezzled this funds which were contributions from each member of the LGA, there's a great tendency that, not only will he be charged to court by the citizenry of this LGA, but face a lot of jungle justice from the people which might include the burning down of his properties etc, which in a way tends to hold those in position of power accountable for their actions.

Do you think paying taxes in Nigeria can improve the Nigerian state?
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by blackmann(m): 5:02pm On Apr 10, 2008
Of course it can improve the economy of the country, but due to the greedy tax-collectors who would rather divert a larger percentage into their private accounts, nothing much as been done about improving the so called economy.
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by damola1: 5:22pm On Apr 10, 2008
My comments are directed to an economy driven to success by the followership.

Paying into direct govt. Bank account solves the problem you have simply posted.
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by Seun(m): 5:30pm On Apr 10, 2008
Taxation may help the poor and less privileged indirectly, but it definitely slows down the economy.
It's a well known fact that taxes and regulations slow down the economy. Not debatable.
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by TheSly: 5:40pm On Apr 10, 2008
but due to the greedy tax-collectors who would rather divert a larger percentage into their private accounts, nothing much as been done about improving the so called economy
My thought exactly!
Taxation may help if it is properly maintained but due to the enormous amount of looters in power. .
I don't think it would work. . .even if it's being deposited directly into govt bank account. . .
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by 4Play(m): 5:47pm On Apr 10, 2008
@Seun

I think his core idea is that taxation improves accountability.If people are made to pay taxes,they will be more keen to rise up to their responsibility to hold Govt to account.

The Govt in turn will be more responsive to the citizens' needs since,unlike with oil revenue,a lot of the money coming into Govt coffers will come from the pockets of citizens.

It sounds good in theory but unworkable in practice.Many Nigerians don't pay taxes,not because we are not required to pay,but because the system is so dysfunctional that the tax-collection system has broken down.Tax avoidance is the norm ,thus,the idea is unworkable.
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by Kobojunkie: 5:55pm On Apr 10, 2008
@Poster, I believe your idea is a good one in the ideal world. There have been situations in the past where local governments have tried such on small scale and for the most part, proved to be successful, only that in the end, the nigerian factor ( corruption) has always come in to destroy all the good. I do believe that people need to be cajoled into paying taxes as way to get them to take it upon themselves to ensure that government is working for and in their interest but I believe with the current state of things in that country, there is a lot that we need to deal with to create an environment where that sort of model will work well.
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by bawomolo(m): 6:11pm On Apr 10, 2008

Current tax rates should probably be reduced and then enforced to the letter, so the government will function better, but there's a difference between the government and the economy.

why should current tax rates be reduced??
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by damola1: 7:13pm On Apr 10, 2008
Almost every single response have more or less tagged the idea as ideal and not feasible.

2.  @ looters, the goal of the entire process is to flush out corruption and develop the economy. It might take time though, but it's possible with the right frame of mind. I don't think anyone would appreciate wastage of resources, especially one that has been directly linked to you as a person.

3. @ seun, I am not sure where you got the facts from that taxation and regulation slows down the economy, but I know one thing, that the countries we wish to be as rich as like USA, UK, France have a sound tax system, therefore it might simply be the path to success, nothing wrong to learn from the masters, besides, have you ever heard an american journalist or citizen accuse the government without linking it to "Tax Payers money". I mean, IRAQ war cost America not only lives but billions of dollars which has been attributed to tax payer's money, the citizen's money, my money, therefore they have all the right in the world to express their anger at them.


Maybe, maybe not,  almost every new idea or unusual idea has been seen as not feasible anyway. I will leave time to judge that.

Buying into the idea is the key, a campaign among like minds who believe it could work if they try it within their neighbourhood, and eventual campaign and push further to others in their neighbourhood could create a change. It'll take time but I have a strong believe it's feasible. very feasible, only it must start with those that believe.

Do you think as a Nigerian  living in Nigeria you can buy into this idea, if not, why not?
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by Nobody: 7:17pm On Apr 10, 2008
paying taxes , as far as i'm concerned is simply adding more  fuel to the fire of embezzlement

i pay tax. (direct deduction from my salray) a lot of lagosians do

theres even a new tax initiative- you must have tx clearance before you can get anything done.

but this is the issue - paying taxes is simply giving elected officials more money to steal . do you think they will handle taxes any differently from the way they handled federal govt allocations?

we all pay phcn bills- even if we have no light for 3 months straight. paying those bills has not enforced any sort of accountability with PHCN.
the simple paying of money to a danfo conductor is no guarantee that you will get to where you are going. the 'contract' does not enforce any sort of accountability on the part of the driver or the conductor - unless it is backed with 'my craze pass your own'

this is naija. more people than you know pay tax already. contractors pay 5% vat on their projects. workers in multinationals or moderately large companies all pay taxes.
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by damola1: 7:29pm On Apr 10, 2008
Thank you.

I am not absolutely sure about the statistics, however, it seems to me, there are more runs, i.e. business people/traders in Lagos than employees.

1. Tax clearance is a joke, I can get that with 5k for the past 4yrs from alausa.

2. You were forced to pay taxes, you did not do it out of will and see a need to and a duty, therefore you don't know exactly how it might affect you or buy into the idea, finally, you probably paid it to Lagos, I am talking about paying taxes to those that you can easily access like your LGA councillor who might happen to live in the next street, not some govt. pocket of Lagos state, it'll be madness to expect you can hold fashola to ransom, but it'll make a lot of sense that you hold Mr. Owokoniran, councillor of Ward B, IKeja LGA area responsible for the tax you paid last week, and not just by you, but by a collective effort from all the people living on your street, because he promised that 3 months into coming to the post, he would make sure you have street lights or consistent water. A team, a collective effort, could work.

3. It's actually the
'my craze pass your own'
that I am after, you see once you see it as a responsibility to do so willingly, out of your own patrotism to develop the economy and pay into the pocket of the ward in your own LGA where you belong, I am positive that your craze will come into action when you hear he embezzled 50M of which 100 of your types who have willingly paid to his pocket will hold him responsible for, I won't doubt the judiciary for one min. to send him to a jail term if you can prove he's actually a crook.
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by Nobody: 7:44pm On Apr 10, 2008
i pay tenement rate.

the nepa bill can be considered a tax - but what will any display of craze yield ? enter the darkness!
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by somze(f): 7:56pm On Apr 10, 2008
I'm already paying way too much tax, dont see how that has improved my life
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by Kobojunkie: 10:01pm On Apr 10, 2008
Seun:

Saudi Arabia is the richest oil producer and they practice God's great law. Maybe we need God's Great Law in Nigeria too?

We are already practising that in some way up North. Are you sure you and your family will be happier with this so called "God's Great Law" if the rest of Nigeria were to adopt those practices  Should we copy it just it works for some in Saudi Arabia and even when we see it destroying lives and peoples right there for us I think we have already sampled that idea and found it more destructive to us as a people than it is benefitial. I think it is safe to say that idea failed and so we should look elsewhere for a model that actually works for the people and not just those who are in ruling seats.
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by somze(f): 10:33pm On Apr 10, 2008
Seun:

Saudi Arabia is the richest oil producer and they practice God's great law. Maybe we need God's Great Law in Nigeria too?
No wonder we have mukina as the moderator of Religion, a ban on most or all the christian apologetics on nairaland and the word "Is_lam" rendered as Islam.

Is_lamics never cease to amaze me with the totalitarian and autocratic disposition
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by Seun(m): 10:37pm On Apr 10, 2008
I am being sarcastic, for goodness' sake!
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by somze(f): 10:46pm On Apr 10, 2008
grin grin grin
Thank God you never chose to be a comedian wink
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by Cadet(f): 10:55pm On Apr 10, 2008
lol
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by damola1: 10:56pm On Apr 10, 2008
The watch word here is simply: Accountability.

Where there is no applied penalty for broken laws, there's chaos and flaunting of rules and regulations.

No one can hold those above us in position of power responsible for their decisions and actions better than the followership, and we should try as much as possible to understand the basics of my motion.

Holding people that manage our monies responsible for their actions.
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by frag(m): 11:09pm On Apr 10, 2008
While you are busy scheming good stuff for the country are you also aware that the same local government chairman is filling his pocket with federal allocation? Just like one person has said,you dont hold someone accountable by throwing more money at them. These guys are in government to embezzle government funds and nothing else. If i may ask,did you vote?
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by damola1: 12:39am On Apr 11, 2008
The success of our country as a whole is the individual contribution of each one of us.

Look around you, since you are in Lagos, how many people have actively contributed to development of our country by making sure it's well managed. Or would you leave your company funds at the mercy of your accountant without having an audit team cross check. And if those around you are active, how many of us in Lagos, compared to the political class have been actively involved in day to day running of our Government one way or the other, not simply being a dummy and following every instruction out of fear.

In developed countries a larger % of the people are involved in everything related to govt., everyone is a part of the system. Actively, NOT PASSIVELY.

I stand to be corrected, however I think Lagos is probably largest City in Nigeria with the highest number of civilised people.

You see, the emphasis on paying taxes simply relates how we react to money, we are very emotional about money,  which shouldn't be so, however we can use this emotional touch to develop ourselves. By paying taxes, on and on and on, as a social responsibility, not out of enforcement from the government, and I believe, the government wouldn't be so far from us as we still think, one day one day when you remember say you went to the bank to pay 10k into your LGA chairman's office account, and the next morning , you heard he embezzeled 100M and he's currently on a show live on Channels TV to defend himself, out of patriotism you wouldn't stop paying, rather you will drive down to channels and punch him in the face. I am sure the next one that comes in , will not only be thoroughly checked, but also be afraid of the mob of educated doctors and lawyers and engineers who have suddenly become punchers.

Thats how far money can push us. Develop our nation!
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by Nobody: 6:25am On Apr 11, 2008
I'm sorry, but I SHAN'T pay tax, and I will resist all motions for Nigerians to pay tax because we all know, that the tax money will go the same way the 300 million that was meant to develop NEPA and the power sector went. Nigerians work to hard to have their hard earned money siphoned off into a swiss account, with nothing to show for it on top.
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by damola1: 8:51am On Apr 11, 2008
I do not expect everyone to buy into this idea.

But if you live in Ikeja, Lagos and buy into this idea, by the slightest chance, buzz me on damola@damola.com

Lets see how much we can try.
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by anonimi: 9:40am On Apr 11, 2008
the poster's idea is very valid in as much as it is paid to the local authorities who pay a portion to the next level of government till the apex. this is not like what is happening with VAT, whereby Lagos collects e.g. 10b, Kano collects 2b, Enugu 1b and they share Lagos 5b, Kano 5b, Enugu 3b and this has nothing to do with Lagosians consent or not, get the drift?
this is what happened up to the invasion of the military in politics in 1966 and the QUALITY of life for everyone was much better than today despite the oil revenues.
as he said when you give money for a service/product, the PROBABILITY of your demanding accountability is greater than when you have not given any money. have you noticed how europeans & americans are generally more involved about their governance/politics than we are?
in today's naija, the government does not go after individual taxes vigorously because it is easier for them to collect the federal allocation. so if you ask the gorvernor or LG chair on infrastructures or manifesto promises, them fit respond say no be your money im dey spend. meanwhile he cannot receive any farthing but based on the population - i.e.you & i. Even yara cannot receive anything (taxes) from the oil companies if he does not have the mandate of the 140m nigerians, whether obtained by hook or crook.
you may say things are not that simple, however this mindset is the framework on which you can add other complexities & variables.
@ Seun,
you mind explaining how a society/community can provide common services -education, electricity, potable water, law enforcement, defence of territorial integrity etc- without taxation (in whatever form)?
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by Nobody: 9:49am On Apr 11, 2008
just to bring y'all back. . .

Saudi Arabians don't pay tax.

and you can rest assured - their common services - education, electricity, potable water, law enforcement, defence of territorial integrity etc- without taxation (in whatever form)? etal are all working
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by damola1: 10:00am On Apr 11, 2008
Finally, I am very glad that someone understands my perspective, thank God, thank you @ anonimi

However, I am still quite young, and still so many decades ahead, I won't ask for more than what I still asked for.

If you live anywhere around Ikeja, Lagos, and you buy into this idea, lets give it try, it might just be what we need or maybe not, however, no harm in trying, we will invest some money and time into it, maybe a few hours a week, and a certain % of our net income, write letters to LGA, state govt. and not get feedbacks, it'll be fun I bet you, but no harm in trying, maybe in a few years our own immediate environment can begin to enjoy the fruits of trying.

But I believe, as long as we continue to try and develop our ideas around the basic goal, this won't fail.

email me again; damola@damola.com
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by Nobody: 10:11am On Apr 11, 2008
damola1:

Finally, I am very glad that someone understands my perspective,  thank God, thank you @ anonimi

However, I am still quite young, and still so many decades ahead,  I won't ask for more than what I still asked for.

If you live anywhere around Ikeja, Lagos, and you buy into this idea, lets give it try, it might just be what we need or maybe not, however, no harm in trying, we will invest some money and time into it, maybe a few hours a week, and a certain % of our net income, write letters to LGA, state govt. and not get feedbacks, it'll be fun I bet you, but no harm in trying,  maybe in a few years our own immediate environment can begin to enjoy the fruits of trying.



But I believe, as long as we continue to try and develop our ideas around the basic goal, this won't fail.

email me again; damola@damola.com

i can just see those 'baba mufu' lga chairmen( one's campaign poster read - 'the opium of the masses'  poring over my letters grin grin grin

until there is a system in which our votes actually determine who gets in , taxation will not work. there is no voters revenge in which one gets to flush erring politicians down the toilet in naija. thus there is no accountability - or rather no political consequences to elected officials for irreponsible use of funds. or have you forgotten 'lucky (make im repeat bo!) igbinedion?  grin
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by damola1: 10:41am On Apr 11, 2008
@ OYB,

I am not hear to convince you, its a waste of my time, because I doubt you will ever be convinced unless you see it work.

Unfortunately, most people who I have conversed with on nairaland have always had to feel defensive rather than constructive discussion, which might pick up one or two things from the other party.

If this thread don pass a few pages, and its only going round and round and round,  I go just waka.

If you have read my posts and comments above, and find the idea insteresting, and willing to go on an adventure that would help develop my great country Nigeria, please buzz me.

This is a local one on one thing, that has to do with our ward councillor thats why I asked for people residing in Ikeja. if you feel it's worth it, you can try it within your own neighbourhood too.

So, please, if there's anyone who might have bought into this, buzz me on damola@damola.com

I must say it'll take us years, because firstly, we might need to cover all loop wholes for embezzlement, as I dislike waste, and I wouldn't want one fool embezzling my hard earned dough, so, expect ideas like, we must know what comes into the accounts of the IKJ LGA cofers, how far our own cash can really influence, is there a need for us to ask the govt. to stop paying allocation to the LGA it's only affecting us negatively, etc, etc.

So, please, if you dey IKJ by any chance, buzz me.
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by Nobody: 10:49am On Apr 11, 2008
cry cry cry

the young are not prudent - therefore they continue to attempt and achieve the impossible - generation after generation. i

i can't remember who said that. . .

i guess i've gotten too old and cynical ( mentally). don't mind me. . .all the best. . .
Re: Paying Taxes In Nigeria, Can It Improve The Economy? by Nobody: 10:57am On Apr 11, 2008
it is only those in salary employment and aspiring politicians that pay their taxes.There must be a change in attitude for our country to develop[color=#006600][/color]

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