A Legal Review of the Bounds and Theories of Taxation as a Revenue Pool in Contemporary Nigeria

Abstract

This paper contextualises a review of literary and legal postulations, including theorems of taxation, the rationale behind its imposition, the conceptual meaning of taxation and revenue, sources of revenue, meaning and conceptualisation of the scope of taxation, an overview of tax administration in Nigeria and forms of taxation in Nigeria. It takes cognisance of the unshakable position of taxation as a panacea for raising the much-needed funds for meeting government’s unending obligations to its citizens. This paper takes a cursory look at the different shades of opinions of legal scholars on the theme of taxation and conducts an expose on the review of the types of taxes chargeable under the Nigerian legal system including the recently introduced hydrocarbon taxes as prescribed by the Petroleum Industry Act 2021. This paper sought to assess and review the limits of opinions and theories of taxation as revenue generation strategic policy in modern day Nigeria and it found that opinions are divided on the effective use of taxes as fund-generating springboard of government and that the various theories of taxation are all at amity regarding the fact that taxes are levied to be paid, not a duty to be avoided or a chore to be loved, it is a mandatory payment, irrespective of the many disincentives for its payment by Nigerian tax payers. It concludes by stating that a government with an efficacious tax policy will have sufficient revenue to meet its obligations and engender tremendous development in its territory and prescribes the need for justiciability of tax payer’s rights to ensue accountability on the side of the government, a systemic harmonization and corroboration from tax authorities and government delegates, in order to achieve an effective tax administration to enhance positive tax compliance.