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6 Reason for the New Tax Laws in Nigeria

6 Reason for the New Tax Laws in Nigeria

6 Reason for the New Tax Laws in Nigeria

  1. All taxes are based on either income or spending in the end. It is argued that having two broad-based taxes rather than three is more convenient than having an incomprehensible amount of mushroom taxes that produce little or nothing.
  2.  It will be more difficult to enact broad-based income and expenditure taxes.
  3. While some existing taxes are minor revenue generators, others continue to contribute to administrative costs with the money they earn.
  4. While a complex tax structure may benefit tax experts, it also drains resources. to the economy and to the taxpayers.
  5. It will solve the local government’s taxation dilemma of several taxes. Allowances, exemptions, concessions, waivers, tax holidays, and other similar exemptions, exemptions, concessions, waivers, tax holidays, and other similar exemptions, exemptions, concessions, concessions, Preferential devices not only make taxes more complicated, but they also make them more difficult to understand. Abuse, corruption, tax evasion, and an avoidable increase in the cost of living the administrative cost and,
  6. The informal sector’s exemption is justified by the fact that the operators are self-employed. In terms of scale, it’s atomistic, and it doesn’t keep track of anything. Their exemption does not imply that they are exempt. They will be exempted from all taxes since they will pay an expenditure tax when they buy things to enter the official sector to make purchases and to do so at already-low rates reflect the tax on expenditures The proposed new tax scheme is stated to have a higher potential for revenue than the existing system To accommodate the new tax, the Constitution needs are modified. In addition, it was suggested that a technical committee be formed to hammer out the specifics of the new system Perhaps as a result of the radical nature of the proposal, its effect on entrenched interests, and the general reluctance to change, the above recommendations were rejected by the federal government.
Lovelyn

Lovelyn

I am a qualified chartered accoutant and an experienced customer care representative. I love to educate small business owners on tax trends and accounting.

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