REVIEWING TAX COLLECTION IN THE ELECTRONIC TAX REGIME IN NIGERIA

Abstract

It is evident that the objective of tax is to raise realistic amount of money from the various tax payers by the government of a country in order to provide for the basic needs of its citizens at all times. Governments including Nigeria, device options with a view to continually improving tax collection. For this study, the option in question is the adoption and implementation of electronic system in tax collection in Nigeria with a view to improving tax collection. The focus of this study is therefore to assess whether the introduction of electronic tax system in Nigeria will produce high tax collection when it is compared with the manual system results. Paired t-test data analysis technique was used since it involved the comparison of pre and post electronic tax collections to determine for any significant difference. Following the expectation from the advent of electronic tax system, the actual secondary data extracted revealed a reduction in tax collection within the period of study. The result of non-oil tax revenues reveals a significant difference between pre and post e-tax. On the other hand, the result in respect of oil tax shows that there was a difference but it is not significant. Based on these findings, the study recommends that the FIRS should revisit this new system for i) reorientation and sensitization on regular basis until the tax payers are satisfied with new method; ii) implementation to be in phases following the responses from the tax payers directly or through consultants; and iii) FIRS must be ready and willing to listen and address relevant inputs and responses from the tax payers if the objectives of new system must be achieved.