The French declaration of the Rights of the Citizens of 1789 once said "Common contributions is essential for the maintenance of the public forces and for the cost of administration. This should be equitably distributed among all citizens in proportion to their means."
Taxation can not be called JUST when it is Regressive or Proportional since they both are tax system of equality and detrimental to the poor.
"I dey pay 100naira for this my ugu (vegetables) wee de gain no dey fit buy better food and mama Sandra wee get big shop, wee big pass every person own for dis market dey pay 100naira join" Exactly the words of lamentation from Sisi, a vegetable trader in Ishieke market, the popular students area of Ebonyi state university.
Juliam a student bus driver, shuttling Ishieke to Abakaliki town laments "Weda my bus full oo or e no full, I go must pay 60naira for every trip"
When asked about bank savings, Juliam replied "Wetin? As tins come hard like dis, I go still come go dash bank people my money? Mbakwa (No)"
Sadly, Sisi and Juliam are two out of millions facing similar issues in Nigeria.
Presently in Nigeria, the Central Bank of Nigeria (CBN) implemented a Nationwide 50naira stamp tax on all deposits over 1000naira and these taxes are collected, irrespective of the size of the individuals account, total earnings or safeguards. This taxation clearly has outrageous impact on the likes of Sisi ( market women, keke riders, Okada riders, bus drivers and their likes). CBN is discouraging these low earning citizens from using banks by dipping into their meager days earnings.
Prior to this, The Federal government embarked on the implementation of Nationwide tariff or tax on electricity of 45%, this obviously raises the cost of living on everyone and undoubtedly increases the poverty rate in Nigeria.
The progressive tax system should not be applicable only to income taxes rather, every tax paid in Nigeria should be calculated as an individual or entity earns.
Nigeria falls below the generally accepted threshold of 15% of tax to GDP ratio with her 7% of tax to GDP ratio, this can be changed by equity in taxation instead of equality.
Quoting the former Minister for Nigeria's Economy, Dr. Ngozi Okonji-Iweala “When we looked more closely at our tax payers’ database, we discovered that about 65 per cent of registered tax payers had not filed their tax returns in the past two years’’
“This non-compliant group fall in the grey area between the informal sector and large companies and I think, from an enforcement viewpoint, we can get a good `bang for the buck’ by focusing on this sector,’’ she said.
With so many defaulters, falling into the companies, the nation should work for increase in tax revenue with great interest in these companies.
Another avenue that Nigeria as a Nation can increase Her tax to GDP ratio without oppressing the poor masses will be to levy special taxes on the elites in the Nation,, such taxes can be Luxury Car or Vehicle Taxes, Dollar hoarding Taxes, Property Taxes, Capital gains Tax, Luxury Foreign Goods Taxes and Inheritance Taxes.
I strongly Campaign for Tax Justice in Nigeria through Equity in taxation against Equality.
The reality is that the Progressive tax system at every aspect of taxation will increase government tax revenue and reduce the poverty rate as well.
Okwuosa Maryjacob
08063819442
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