Taxation: A Vital Tool in Economic Growth

Sustainable development is the pathway to the future we all want” Ban Ki-moon  

Having the right perspective for something is not only important but also necessary for carrying out the right actions. Taxation plays a crucial role in the development of any economy. Tax is a major source of government revenue and tax proceeds are used by the government to render their traditional functions such as: provision of good roads, maintenance of law and order, defence against external aggression, regulation of trade and business to ensure social and economic development, etc.  All these and more can only be achieved if you and I play our part in contributing to the funds (taxes) that will make this development a reality. The development of any economy cannot be achieved if there is a high level of non-compliance to the payment of taxes.

Let’s break down this tax talk in real terms. Taxation is a levy on an individual or corporate body by the central or local government to finance the expenditure of that government and as a means of implementing its fiscal policy. Thus, the government can transfer resources through taxation from private consumption to public investment.

According to Ogbonna and Ebimobowe (2018) “the political, economic and social development of any country depends on the amount of revenue generated for the provision of infrastructure in that given country”. They further stated that a well-structured tax system would boost the generation of income for the meaningful development of such a country. We can link this definition of taxes to the words from the Holy Book; the Bible, where Jesus paid tax to the government of Caesar the Roman Emperor. There were many taxes needed from the provinces to administrate the Roman Empire. These taxes paid for a good system of good roads, law and order, security, religious freedom, a certain amount of self-government and other benefits.

When next you are having doubts on the reason why you should comply with your taxes, just view taxation as the key to everything you want. Your compliance is the key to good roads, advancement in the education sector, good electricity, etc. Henceforth, perceive your compliance as a means of creating value and improving your standard of living.

In line with the aforementioned; Taxaide can ease the stress of tax compliance by providing you with exceptional solutions that are in line with your business services. At Taxaide®, we develop strategic plans, including a tax plan that is broad-based and prioritized yet flexible enough to accommodate the complex nature of the Nigerian tax regime. Our tax professionals can help your tax function become less laborious and time consuming. Our seamless, efficient, and effective tax Management service entails doing the following and more:

  1. Providing tax advice to ensure your compliance and tax efficiency;
  2. Utilizing our strong relationships with the states’ IRS (Internal Revenue Service) to resolve any issues on your compliance or tax pay-out; and
  3. Ultimately ensuring you timely obtain your clearance certificates and record updates.

For more information on all tax-related issues, please do not hesitate to contact us at:

Tel: +234 700 TAXAIDE (0700 829 2433), +234 1 631 0971

WhatsApp: +234 810 701 7274

Email: business@taxaide.com.ng