An Overview of Legal Regulation and Institutional Framework for the Nigerian Tax Policy and Administration

Abstract

The Nigerian Tax System is generally looked upon as a source of Government revenue in so far as economic activity is carried on in the society. Recent developments in the global economy have significantly impacted Government revenue and this has directed focus on taxation as a sustainable source of income to the government.

The various tax authorities at all levels of government have difficulties in adhering to the statutory roles and collectible taxes in their various jurisdictions. The taxpayer is therefore at the receiving end as he is at a loss as to which tier of government collects which tax. The resultant effect is non-payment of tax or non-compliance with tax laws. It is in line with this that the National Tax Policy intends to create awareness on the importance of the role, which taxation can play in securing a stable flow of revenue for the Government.

This paper discussed the Nigerian Tax policy and administration with a view to finding solutions to the challenges in the policy issues and administration of tax in Nigeria. The paper recommended that there is a need for public enlightenment and tax information and research services should be embarked upon by various tax authorities and administrators, and tax payers should be made to see the benefits of their taxes. The whole essence is to maximise tax revenue within the jurisdiction of each Government in line with Constitutional and statutory provisions.

Key words: Taxation, Tax Policy, Tax Administration