This topic can be complex according to different countries, but in my own country, Nigeria, it is not as it is expected. Do we even have an effective and efficient tax system in my Nation? No, because everything falls under corruption, the forbidden fruit we, the citizens, are praying fervently to God to intervene🙏 There was a time when I went to visit my sister at her new shop, and then these officers came for tax. After so much talk, they agreed to collect a certain amount that wouldn't go into any pulse other than theirs. I was so pissed to hear that's how they have been coming every two weeks to demand the tax that has no record🤔 Many cases like that.
The genuine taxpayers in this country are the government workers because the tax is deducted directly from the source before the money is paid to each worker. However, this system does not yield the expected results, as tax laws are crafted by leaders who often prioritize their own selfish interests and those of their generations rather than focusing on the well-being of their citizens. They still embezzle this payment but it cannot be compared to the tax collected from commercial transport, motorbikes, and tricycles that have no accountability.
I have been paying taxes since the day I started working, and I have never witnessed any tangible outcomes of these contributions in terms of infrastructural development or effective governance. Our roads are in disrepair; even the major roads and hospitals lack essential equipment, transportation, and other basic amenities.
Currently, my tax deduction is $30 every month based on my level, while others above my level pay $100 and above monthly. Additionally, there’s a deduction for a health scheme every month that supposedly covers medical care, yet, in reality, access to medications, diagnostic tests, or even necessary surgeries requires one payment if one seeks quality healthcare. Why can’t the government ensure transparency in these matters?
Also, there is a housing fund, where deductions are made for a housing facility that individuals cannot access til retirement. After 12 years of working and diligently paying taxes, I find myself receiving no benefits apart from my monthly salary. It feels as if those in power enjoy the sweat derived from the hard work of the citizens while they travel around to enjoy.
What measures should the government consider to utilize tax revenues effectively?
- The government should introduce a system for taxpayers to receive a refund once a year, creating a sense of accountability and reward for their contributions.
- They should tackle corruption, which is rampant at various levels in Nigeria, eroding public trust and embezzling funds meant for development.
- They should prioritize investments in infrastructure that directly support economic growth and improve the standard of living for all citizens.
- They should also adopt open communication with citizens to genuinely understand their concerns.
- They should ensure transparency in how taxes are utilized, providing citizens with regular updates on government spending and infrastructure projects.
Considering the measures stated above, the government can begin to rebuild trust with its citizens, ensuring that the hard-earned taxes paid are visibly contributing to the betterment of society as a whole.
Let me drop my pen here because topics like this bring resentment, and it cannot yield anywhere. How I wish there was an avenue to face the government and pour out our minds, it would be better.
This post is in response to the #hivelearners weekly edition on the topic: Tax is Taxing.
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The country may change, but you seem to be describing my country. I think things are a bit more complicated in your country, but my country is moving towards something like that. People no longer want to work formally to avoid paying taxes. And most of the public money stays in the pockets of politicians and the king's friends, and the population is left with nothing but the leftovers.
It sounds like you're describing a situation where tax evasion is becoming more rampant due to a lack of trust in the government's management of public funds.
When people feel that their taxes aren't being used for the greater good, but rather lining the pockets of those in power. We work and they enjoy🤔
Sometimes, I wonder if these money gets to the government account. The corrupt system we have in Nigeria has made everything so complicated. I am surprise you pay that kind of money as tax.
We pay without benefits👌
If they increase the pay, they will use tax to finish you
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The thing is, the government is not ready to carry the masses along. Nothing concerns them with our trust even. I can't help but notice you said your tax is $30 which is roughly thirty thousand Naira. Wow! Your earnings must be huge because that tax is big.
They should continue, God is waiting for us all on judgment day.
Yes, some of my colleagues pay higher than that. The higher your earnings, the higher your tax will be.
Haaa big woman 🤲🏿