Why Nigeria needs Tax reform
NaijaRock
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Posted by Felix Okoli on September 13, 2010 at 00:56:03:
Most of the rates and calculations used in the current tax system in Nigeria are based on very old rates and have nothing to do with the current state of the economy. For instance, for Personal Income tax, individuals are entitled to some benefits and allowances which are meant to cater for their daily expenses. The current transport allowance is at around N20,000 per annum. This would have been Ok if it was in the 1980s when N20,000 still had value but in 2010, N20,000 is hardly enough to serve as transport allowance even for 2 months talk less a year.
Also there is the housing allowance which are meant to cater for your accommodation bills. In a city like Lagos, housing is very expensive and even if you find cheap housing, N150,000 per year can hardly be enough unless you stay in a very uncomfortable place.
There is nothing wrong with the tax rates but the current allowances for various items are not really enough for majority of people in the country and I think it is time for a quick reform to improve on this.
Comments:
Most of the rates and calculations used in the current tax system in Nigeria are based on very old rates and have nothing to do with the current state of the economy. For instance, for Personal Income tax, individuals are entitled to some benefits and allowances which are meant to cater for their daily expenses. The current transport allowance is at around N20,000 per annum. This would have been Ok if it was in the 1980s when N20,000 still had value but in 2010, N20,000 is hardly enough to serve as transport allowance even for 2 months talk less a year.
Also there is the housing allowance which are meant to cater for your accommodation bills. In a city like Lagos, housing is very expensive and even if you find cheap housing, N150,000 per year can hardly be enough unless you stay in a very uncomfortable place.
There is nothing wrong with the tax rates but the current allowances for various items are not really enough for majority of people in the country and I think it is time for a quick reform to improve on this.
Comments:
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Re: Why Nigeria needs Tax reform
Posted by aigbekaen clement
on December 10, 2011 at 19:49:40:
i need more information on tax reform in nigeria