₦airaland Forum

Nigsrdumb:
Depreciation is obvious, eg asset depreciation.

I'm assuming you know something I don't, the difference between both is conscious and market induced.

Either way d value goes down.

The credit argument tallies with the taxes.

Taxes put money back into the pockets of the government, keeps the flow of money within the system and everyone benefits, devaluation puts money into the hands of foreigners.

I agree
Governments encourage citizens to spend money within the country. That spurs growth. In certain countries, people even pay some extra tax yearly for keeping money above a particular sum in their accounts. The government would rather that money is spent within the economy even if it's on frivolous things. That's how countries build their middle class.

We wonder how certain sectors in smaller developed countries e.g insurance or entertainment can be worth billions in dollars while Nigeria is grappling with a tiny sum as our budget or how the budget of a state in the U.S is several times more than the budget of Nigeria. A good percentage of that money is from consumer spending. A way they accomplish that is by encouraging citizens to spend.

awesomeJ:
True.

Lazyouth, I learnt folks in Carlifornia, maybe several other US states pay gas tax used for maintaining their roads. The tax is added to the price per gallon folks pay at gas stations.

So when you pay $2.13 a gallon for gas, the actual gas cost which goes to Exxon and the likes may just be $2.01 the 12 cents goes to the road maintenance pool.

So you see Ahib isn't wrong afterall.

That's what alot of folks don't understand.

They fail to understand that ideally, governments use the tax to fund critical sectors of the economy e.g health, roads, salaries e.t.c. As far as it's government funded, the money one way or the other comes from a central pool.

Tax is not just used to generate money for the government but also to guide citizens spending. The government raises taxes on certain things to discourage people from buying them. In some countries, the tax on cigarettes is upto 80-90%. This is to prevent people from smoking. Similar taxes are applied to alcohol, sugary drinks, vehicles with high emissions e.t.c. The money recovered usually goes to a central pool used to fund other areas.

Also, another thing people don't get is that consumerism isn't necessarily bad for an economy. Most times it spurs growth.

That said... The argument is getting much

We should stop celebrating flyovers and stop praising politicians for building roads. It makes it look like they are doing the citizens a favour

maishai:
I believe this summarises my thought, WHAT i may add is that Revenue Generation from taxes in Nigeria is grossly under reported


in fact all forms of revenue Generation in the country is grossly under reported,

Arguing for increased taxation in Nigeria can be difficult because the most of the tax collected is not put into use or just simply embezzled making our politicians the highest paid in the world.
All things said, we need to raise funding for critical sectors