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Taxation historically dates back to the days of non-existent legal tender or cash; back to the times of trade by barter and cowries, tribute payments were made to the coffers of the rulers of the kingdom. Most of these payments were in form of farm produces at harvest, animals or clothing, whichever item formed the value for survival in that age. The chiefs and most times, army commanders were tasked with the responsibility of enforcing that citizens pay their dues. In the North, the emirate ensured taxes were paid based on Qur’anic requirements and backings. Indigenes, hitherto, see taxes as a form of duty to Allah than to mankind. The Taxation began to take a much modern form during the colonial times, the Governor-Generals imposed taxes on villages, towns and protectorates alike to fund their political and economic aspirations. In 1939, the Companies Income Tax was created but was changed due to some irregularities in its policies and by 1978, the Tax administration Taskforce led by Alhaji Musa Shehu established the Federal Inland Revenue Service (FIRS) as the operational arm of the Federal Board of Inland Revenue (FBIR).
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There are no preferential treatments in the payment of taxes. This indicates that every type of income is weighed irrespective of the size of income. In Nigeria, tax rates vary and one may be required to pay different rates on different portions of your income depending on the purpose of money earned. There are two forms of tax rates paid in Nigeria.
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Corporate Tax
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Individual Tax
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