Federal Inland Revenue Service (FIRS) and Economic Development of Nigeria.

1UDOH, OgbonnayaN., 2NWAMBUKO, Temple C. &3ACHO, Elendu

1Department of Political Science, Abia State University, Uturu (ABSU);

2Department of Political Science, Gregory University, Uturu, Abia State;

3Department of Political Science, Abia State University, Uturu (ABSU);

Corresponding Author’s E-mail:udohogbn@yahoo.com

Abstract

This study aims at establishing the link between Federal Inland Revenue Service (FIRS) and economic development of Nigeria. Objectively, this study posits that the connection between effective taxation administration and economic development is the ability of tax to be utilized to maintain and expand existing services, provide infrastructural services, redistribute income and stabilize the economy. However, this study is anchored on the Marxian theory of social production of material value which exposed the cracks inherent in the Nigerian tax system. A crack that is filled with conspiracy by the Nigerian state to ensure the continuous appropriation of tax values to the political class, such that there is a social distortion of our governance through a taxation system that widens the gap between the rich and the poor. Data for this study were drawn from the secondary data such as-journal articles, magazines, newspapers and internet sources. Importantly, this study admires the attempt by the FIRS to increase Nigeria’s tax revenue; but views the Nigerian tax system as suffering from poor tax policies, multiple taxation, and tax avoidance by the political class. This study discovers that the fluidity of the Nigerian system and the character and nature of its political class creates room for a tax administrative system that sustains tax avoidance and evasion by the dominant class. Furthermore, this study suggests that to curtail the tide of series of horizontal and diagonal tax splits (multiple taxation and tax collection crisis) among the constituent state governments and the federal government in Nigeria, the government should strengthen its institutions and open up her political space to allow for checks and balances. On the part of the FIRS, it should develop an effective information data base that will contain all eligible tax payers and expand its tax net to absolve small businesses. Finally, the implications of the above recommendations is that it will create a viable, genuine and workable Nigeria tax system that will be seen as a strong departure from traditional pursuits of state/class interest, to a system that invest in human security conceived in developmental and people-oriented terms.

Citation of article: Udoh, O. N., et al (2022).Federal Inland Revenue Service (FIRS) and Economic Development of Nigeria. African Journal of Politics and Administrative Studies (AJPAS), 15(1):49-63

Citation of article: Udoh, O. N., et al (2022).Federal Inland Revenue Service (FIRS) and Economic Development of Nigeria. African Journal of Politics and Administrative Studies (AJPAS), 15(1):49-63

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