A legal examination of the role of taxation in revenue generation and economic development in nigeria

Thesis Overview

<p> </p><div><p><strong>1.1 Background of the Study</strong></p><p>Tax is one of the sources of revenue for the government.1 This is so because for the achievement of aims, goals and objectives, an organization will need to have enough funds at its disposal. This importance assumes an accelerated dimension in the face of the present economic recession in Nigeria.2</p><p>Therefore, tax system is one of the most powerful means available to the government to stimulate and guide its economic and social development. In the life of any nation, taxation is an indispensable tool employed by the government for the promotion of their overall economic and social objectives. The crucial role that taxation plays in the development of Nigerian economy cannot be over emphasized.3 Though revenue generation seems to be the primary goal of the government when it levies taxes, however it not the only purpose of the government in levying taxes, but produces economic need for the government.</p><p>For instance, when investment, production, consumption and so on, begin to rise or fall dangerously, a change in the tax structure can stop or reverse the undesired trend. It is in recognition of this crucial role of taxation in a countryâs economy that the United State Supreme Court has this to say in the case of Nichols v. Ames</p><p>“Taxation is one great power upon which the National fabric is base. It is necessary to the existence and prosperity of a nation. It is in the air she breathes. For natural men, it is not only the power to destroy…”</p><p>Taxation provides the main impetus for formulation and implementation of an optimal fiscal strategic policy. To this end state governments in Nigeria play and carry out important roles and responsibilities, for examples apart from Local governments State governments are the second tier of governments closest to the people. These governments coupled with other responsibilities they are saddled with they provides the people with social services, and to do this effectively they need to generate enough funds.</p><p></p></div><h3></h3><br> <br><p></p>