Abstract: Tax is an essential aspect of government source of revenue in Bayelsa State which has imposed charges on taxable citizens and corporate entities. Monies provided by taxation have been used by states and their functional equivalents throughout history to carry out many functions. However, Bayelsa State is one of the Nigeria’s thirty-six (36) States and have eight (8) Local Government Areas of the federation that have implemented the approved tax policy. This implemented tax policy has a severe and devastating effect on the tax objects due to the fact that the essence of tax is defeated as governments’ inability to utilize tax proceeds in the provision of social amenities. These social amnesties are further provided by individuals from their disposable income. It is against the above background that this study was embarked upon to provide details on the immiserising experience of Bayelsa State Taxpayers. This work has exhibited the relationship between imposition of tax, economic growth and economic activities in Bayelsa State. Our investigation has also revealed that imposition of tax can affect economic activities either positively or negatively depending on the discretion of government. Government of Bayelsa State is currently paying its Civil Servants a half month salaries due to the economic recession in the country but it is equally implementing fiscal policy – taxation , thereby affecting demand for and supply of goods and services. The standard of living of people in the state is largely dependent on their salaries as it is a purely Civil Servant State. There is high cost of Goods and Services occasioned by economic recession. We therefore recommends that Governments of Bayelsa State should exhibit interest in stimulating economic activities of the State, provide economic infrastructure such as; good roads, electricity, sanitation, security, education, health care, with its tax proceeds instead of taxpayers providing for themselves after payment of tax to the government, government should not see tax as the only means of generating revenue to stimulate economic activities in the State, rather think outside the box, Tax rate should be reviewed to accommodate the impact of half month salaries of civil servants, Tax should be made payable at times and in ways convenient to the taxpayers, taxes should be made proportionate to incomes or abilities to pay.
Keywords: Tax, Taxation, Taxation scheme, Fiscal Capacity, immiserising experience.
Title: Tax and Taxation in Nigeria: The Immiserising Experience in Bayelsa State
Author: WISDOM S. KROKEYI
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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