TAX PAYMENT IN LOGOS STATE

BACKGROUND OF THE STUDY/DEFINITION AND EXPLANATION

   Basically the crucial functions of any given states government ( specially in developing nation like Nigeria) is the provision of infrastructural services such as  electricity, pipe borne water, hospital, schools, good roass as well as ensure a rise in per-capital income, poverty alleviation and others. However, these stated services could only be adequately meet with enough revenue to finance it. The task of financing the enormous project is one of the major problems confronting the government. Consequently, comes the position of tax on all taxable individual and company within the state. To ensuring adherence to the payment of tax, discouraging tax evasion, and avoidance, government has enacted various tax laws and reformed the existing ones to stand the taste of time. The laws in question includes; Income Tax Management Act (ITMA) companies Income Tax Decree (CITD) Land Tax-Act of 1978, The Stamp Duties Act, Value Added Tax (VAT).

      Tax is a means or way through which governments do finance their expenditure to meet the public’s needs. In a nutshell, tax is a funds realizing by government from the public  as a result of imposing charges on citizens and corporate entities government do use taxation to encourage as well discouraging a certain economics decision . Tax could be charge on a product, income, or activities. However, a tax that is levied directly on personal or corporate income is known as a direct Tax, while the ones on a price of goods or services is known as an indirect tax. The purpose of taxation is to finance government expenditure; tax aids the provision of public’s goods and services such as street light, street cleaning and so on.

      From the view of economics, taxation is been referred to as a non-pend yet compulsory transfer of resources from the private to the public sector levied on a basis of predetermined criteria without a reference to a specific benefit received.

      There are different kind of government tax with a vary rates; however tax rate could be constant by income level. Some taxation systems allow an individual a certain personal allowance and other non business reduction to taxation income. Although business deduction tends to be favour over personal deduction. This done to distribute the tax burden among individual or classes of the population involved in taxable activities. Such as business, or to redistributed resources between individuals or the classes in the population.

      A nation’s tax system is often a reflection of its communal values and the values of those in currents political power. To create a system of taxation, a nation must make choices regarding the distribution of the tax burden i.e. who will pay taxes and how the taxes collected will be spent. In a democratic nation like Nigeria, where the public elect those in charge  of establishing the taxation system, this choice reflect the type of  community that the public wishes to create. On the other hand. Country where the public does not have a significant amount of influence over the system of taxation will be more of a reflection on the values of those powers.

      According to Mr. Babatunde Fowler, the chief executive officer of Lagos state Inland Revenue, there is no country or any given state around the world that can easily achieve its general objectives of governance without funding. In Mr. Babatunde’s statement, even ordinary citizen have come to realized that government cannot achieve anything without proper taxation system in place. This simply means that every matures able citizen is expected to pay his or her tax accordingly for the smooth running of government is plan for the public. To illustrate the important of taxation in Lagos, currently the state government do receives an amount of N8bilions from the federal account on a monthly basis. Out of this, N6billion is spent on the payment of salaries. Deducting N6billions from N8billions will be resulted to N2billions for Lagos state to carry out its task which will not be enough. Thus the payment of tax with Lagos (specifically Ikorodu) is as important as heart is to human. For the purpose of this study , the research work  shall be concerned with the tax payment in Lagos State ( a case study of Ikorodu)

METHOD OF DATA COLLECTION

In this research work, an instrument called questionnaire under survey method of data collection will be use. However, due to time factor, a specific group of people living within Ikorodu will deliberately be chosen for the study.

QUESTIONNAIRE

An hypothesis of peoples reaction toward the exercise of tax payment in Lagos,a case study of Ikorodu and its environs, shall be put to consideration by trying to look at the public view on taxation in a tabular format and analysis.

NAME	QUALIFICATION	OCCUPATION	TAX	METHOD OF PAYMENT	OPINION ON TAX	CHALLENGES
Oriakhi Ebenezer	ND	Medical Record Officer	Yes	They deducted it from my Salary on a Monthly basis	It is a good initiative provided the rates are expended on public project	No visible challenges
Sikiru Bashiru	PGD	Mechanical Engineer	Yes	Deducting from my Salary	it a good activity for it is use to develop social amenities	The exerptation is not effective
Aboriota Sunday J.	ND	Marketer	Yes	Through my Company by deduction from salary	Tax is good	The certificate is usually delay -Tax I.D
Bekesuo Maria T	ND	Business woman	Yes	Payment through designated bank	it is a civic right to the state for development of the state	Difficult to interpret
Ojatula Gbenga Henry	ND	Working at Chev	Yes	Through the company i work with	Tax is a good thing if it is well manage	Corruption in the taxation system
Akingboye Johnson	Undergraduate ( Ful-time)	-------	----	--------	it is good	-------
Mr. George Tunji	-------	-------	Yes	Bank Teller	My opinion about tax is that it is the best way to get across to humanity need after the society as faithfully carryout their citizen right.	No

 

NEWS STORY FROM THE RESEARCH:

YOUR TAX IS OUR STRENGTH: LAGOS STATE GOVERNMENT

Lagosians adherence to the activities of taxation system in Lagos State contributed to the states uniqueness, as well its finances impact.

Just as heart is to human, payment of tax in Lagos is an important activities as N8billions received from the Federal Account on a monthly basis was not enough for the state's project. N6billions from the Federal Revenue Allocation goes for workers salary, while the government will be left with N2billions for the  whole projects within the state, hence tax payment.  

Deduced from study, large percent of the public believe on taxation system as they  view it as a means through which the government could provide the common need for the masses, thus they pay their tax accordingly. however, there was compliant that the terms is difficult to interpret, delay of certificate, as well corruption.

According to Mr. Babatunde Fowler, the Chief Executive Officer of Lagos State Inland Revenue and Executive Chairman for Lagos State Board of Internal Revenue, No Country or State can achieve her general objective without funding. Mr. Babatunde added that even ordinary citizen have now comes to realised that government can hardly achieve anything without tax payment.

Thus, he urged every taxable citizens to pay his or her tax accordingly.