Assessment of nigeria tax system and its effect on educational system to public sector

Project Abstract

The tax system in Nigeria plays a crucial role in funding the educational system, particularly in the public sector. This research project aims to assess the Nigerian tax system and its impact on the educational sector, focusing on the public schools. By analyzing the current tax policies, collection mechanisms, and allocation of tax revenue, this study aims to provide insights into how the tax system influences the quality of education in Nigeria. The Nigerian tax system is characterized by multiple taxes at the federal, state, and local government levels. Despite the various taxes imposed on individuals and businesses, there are challenges in tax compliance and revenue generation. This research will examine the efficiency and effectiveness of tax collection mechanisms in Nigeria and explore potential reforms to enhance tax compliance and revenue mobilization for education. Furthermore, the study will investigate how tax revenue is allocated to the educational sector in the public domain. It will analyze the budgetary allocations for education, the utilization of tax revenue, and the impact on improving educational infrastructure, quality of teaching, and learning outcomes. By assessing the transparency and accountability in the allocation of tax funds to education, this research aims to identify areas for improvement in resource management and governance. The impact of the Nigerian tax system on the educational sector will be evaluated through various indicators such as student enrollment rates, teacher-student ratios, academic performance, and school facilities. By comparing the tax revenue generated and allocated to education with the outcomes in the public schools, this study seeks to determine the effectiveness of the tax system in supporting the educational development of the country. Overall, this research project will contribute to the existing literature on the Nigerian tax system and its implications for the educational sector. The findings will provide valuable insights for policymakers, tax authorities, educators, and stakeholders in understanding the relationship between taxation and education in Nigeria. By highlighting the challenges and opportunities in the tax-education nexus, this study aims to inform evidence-based policy recommendations for enhancing the sustainability and quality of education in the public sector.

Project Overview

<p> </p><p><strong>1.1 Background To The Study</strong></p><p>Tax constitutes a system of raising money from corporate institutions and persons on-behalf of the government for developmental programmes.</p><p>Tax is a compulsory contribution imposed by government on eligible taxpayers in the country to aid in the financing of government expenditures in the provision of essential services such as education, health services, road constructions, security, social payments etc. tax are imposed for reason of regulating the production of certain goods and services, protection of infant or certain key industries, Curbing inflation and meeting operational costs of governance. Taxes are also imposed to mitigate the consumption of certain undesirable goods and services, correct the country’s balance of payment and attract investors. Regulate certain economic activities; bridge the inequality gap between the rich and the poor. Consequently in order to achieve these tax objectives, the government implement different types of tax system such as “Pay As You Earn, (PAYE), Value added tax (VAT), Excise duties etc .The research seek to proffer an assessment of Nigeria tax system and it effect on educational system of public sector</p><p><strong>1.2 Statement of the Problem</strong></p><p>A fundamental functions of government is the responsibility to provide essential service and infrastructure for the wellbeing of the people such as the provision of education, health facility, security, good roads, quality education etc. Therefore to achieve this objective of government, it became necessary for government to impose taxes on eligible persons and institutions in the country to raise additional financing to meet these services. Consequently government has always formulated various tax laws, policies and system to meet the challenges of raising additional revenue. They include: Income Tax Management Act (ITMA), Companies Income Tax Decree (CIID), Joint Tax Board (JIB) etc. as a measure of ensuring adherence to tax payment and discouraging tax evasion and avoidance. Therefore the problem confronting the research is to proffer an Assessment of Nigeria tax system and it effect on educational system of public sector</p><p><strong>1.3 Objectives of the Study</strong></p><p>To determine the Nigerian tax system</p><p>To determine the effect of Nigerian tax system on educational system of public sector</p><p><strong>1.4 Research Questions</strong></p><p>What is the nature of the Nigerian tax system</p><p>What is the effect of the Nigeria tax system on educational system of public sector</p><p><strong>1.5 Significance of the Study</strong></p><p>The study shall elucidate on the nature of Nigeria tax system and it effect on educational system of public sector</p><p><strong>1.6 Research Hypothesis (If Necessary)</strong></p><p><strong>1.7 Scope of the Study</strong></p><p>The study focuses on the Assessment of Nigeria tax system and it effect on educational system of public sector</p><p><strong>1.8 Limitations of the Study</strong></p><p>The study was confronted by some constraints including logistics and geographical factor</p><p><strong>1.9 Definition of Terms</strong></p><p>TAX: A compulsory sum of money imposed by the government on its citizen for the provision of public goods and services.</p><p>TAX BASE: This is the object which is taxed for instance personal income, company profit.</p><p>TAX RATE: The rate at which tax is charged.</p><p>TAX INCIDENCE: It offers to the effect of and where the burden is finally rested.</p><p>FBIRS: Federal Board of Inland Revenue Services. It is an operational arm of Federal Board of Inland Revenue which is responsible for the Federal Tax matters.</p><p>CITA: Company Income Tax Act (CITA) is a federal law operated by the FIRS, which deals with the taxation of all limited liability companies in Nigeria with the exception of those engaged in petroleum operations.</p><p>JTB: Joint Tax Board (JTB) is established under Section 85(1) of Decree 104 of 1993 to arbitrate on tax disputes between one state tax authority and another.</p><p>VAT: Value Added Tax is a multistage tax levied and collected on transactions at all stages of sales and distribution.</p><p>CGTA: Capital Gain Tax Act is an act that stipulates that all capital gains arising on disposal of asset of individual partnership and limited companies should be taxed.</p><p>PPTA: Petroleum Profit Tax Act is an act that regulates the petroleum profit tax and also specifies how profit from petroleum will be taxed.</p><p>WITHHOLDING TAX: This is tax charged on investment income namely: rents, interest, royalties and dividends, presently it is charged as the tax offset.</p><p>PROGRESSIVE TAX: This is a tax incidence that increases as the size of income increases.</p><p>REGRESSIVE TAX: A tax is regressive when its tax rate decreases as the income increases.</p><p>EXCISE DUTIES: These are taxes on some goods manufactured within a country.</p><p>PERSONS: It includes all taxable persons whether it be individual or corporate bodies.</p> <br><p></p>