Comprehension: Taxation

One major source of government revenue is taxation. The economist talks of direct and indirect taxes. What we know is that a tax is a tax. In this country, the government claims to expend the taxes collected on the provision of essential services but is there anything really to show for the tax you and I are forced to pay? You see, there would not have been much resentment against the imposition of taxes if the power supply had been constant if taps had been running for twenty-four hours a day, if good roads had been provided and if employment had been generated for the millions of the jobless youths. This is far from being the case in this country.

          There are various forms of taxes which are imposed directly or indirectly on the citizens and foreigners in this country. I would not have been aversed to the government deducting a significant percentage of my salary every month (which is referred to as Personal Income Tax) if the government machinery of collecting taxes from every individual had just been just and efficient. What do you find? The “big fishes” are left untaxed. These are big businessmen and women who make millions of naira but pay little or nothing in the form of taxes. Yet these are the ones that are highly esteemed in societyThe term society is derived from the Latin word 'socius' meaning friendship or companionship. Society is a community, nation or group of people who share the same traditions, institutions, rules and... More and they enjoy the best facilities provided by the government.

          In developed countries, the reverse is the case. The taxes imposed on individuals and institutions are judiciously expended on the provision of social amenitiesSocial amenities, or public amenities, refer to places, buildings or infrastructural facilities which are to be shared and to become convergence spots for the local and surrounding communities. Examples include good... More. There is no power interruption. Taps run for twenty-four hours a day. The roads are so good that one can use a vehicle for twenty years without replacing any major part like the shock absorber.

          In terms of tax payment, in developed countries, the more you earn, the more you pay to the coffers of the government.

          Of course, it is not that the imposition of taxes goes down too well with the people in these advanced countries, for not many humans want to part easily with the money they have laboured for, but at least there are visible things to show for the taxes imposed.

          All through the ages, the world over, there has been resentment against taxes and it continues to smoulder to this day. The degree of resentment however differs from land to land.

          In developing countries, the leaders should ensure a just system of tax imposition and the collection of such taxes as is identical to that of the advanced countries.

          Also, the taxes collected should be judiciously used in providing the much-needed social services which can make life meaningful to both the rich and the poor.

          If this is done people will be quite willing to respond positively to paying taxes.