Authors : A. Ojeka Stephen, Ibidunni Ayodotun, F.O. Iyoha, K. Ayo Charles and Gberevbie Daniel
Abstract: Nigeria like most other African countries is facing a lot of challenges in terms dwindling revenue base. Currently, Nigeria derives about 90% of her revenue from oil proceeds. However, considering the sharp drop in the price of crude oil in the international market, there is an urgent need for the government to expand its tax net in order to capture entities that hitherto not filing their tax returns whether deliberately or as a result of bottlenecks. Some of the government agencies have adopted the e-Governance platform by means of e-Payment to encourage citizens to pay their taxes and to eradicate tensions generated in payment process. However, whether this initiative has led to an increase in tax returns or not is subject to empirical review. This study therefore examined the reactions of tax payers to the e-Payment system, the challenges it has posed and to find out if there is any provision for taxpayers to make input into the tax system in the country with a view to improving on the revenue base of the government through enhanced tax collection system, particularly in the area of suggestions from the citizens. To achieve these objectives, the study analyzed the primary and secondary data obtained from the websites of the inland revenue service at both the federal and state levels of the Nigerian federation and from respondents through the administration of questionnaire to see how the citizens are encouraged or not to pay their taxes and the extent to which the government at the different levels have benefited from the e-Payment initiative compared to the usual face to face manual tax collection system that has been in existence before now. Therefore, using data gathered from relevant agencies within and outside Nigeria, this study focused on examining issues of promoting awareness of the tax e-Filling platform to tax payers, propose policy contents that could instigate compliance to tax systems and identify strategic areas that enhance the role of e-Governance on tax compliance. Recommendations were made about the effective implementation of e-Governance and tax compliance in Nigeria.
A. Ojeka Stephen, Ibidunni Ayodotun, F.O. Iyoha, K. Ayo Charles and Gberevbie Daniel, 2017. Role of e-Governance in Nigeria’s Tax System: Strategy Perspective to Enhancing Compliance. The Social Sciences, 12: 1482-1486.