Lagos state and the politics of taxation by reuben abati
A great topic!
Here's a summary of Reuben Abati's article on "Lagos State and the Politics of Taxation":
Background
Lagos State, Nigeria's commercial hub, is facing a fiscal crisis due to a significant decline in its revenue. The state government has been struggling to balance its budget, and the situation has been exacerbated by the COVID-19 pandemic.
The Problem
Abati argues that the root cause of the problem lies in the state's tax policy, which is characterized by a lack of transparency, accountability, and fairness. The government has been relying heavily on a few sources of revenue, such as the Value Added Tax (VAT) and the Lagos State Internal Revenue Service (LIRS), which has led to a concentration of power and a lack of diversification.
The Politics of Taxation
Abati contends that the politics of taxation in Lagos State is driven by a desire to maximize revenue at the expense of the people. The government has been imposing taxes on the poor and vulnerable, while the wealthy and influential are able to evade taxes through various means. This has created a culture of tax evasion and corruption, which has undermined the state's ability to generate revenue.
The Consequences
The consequences of the state's tax policy are far-reaching. The lack of transparency and accountability has led to a loss of trust between the government and the people. The state's economy is suffering, and the government is unable to provide essential services to its citizens.
Solutions
Abati proposes several solutions to address the state's tax crisis. These include:
- Tax reform: The government should reform the tax system to make it more transparent, accountable, and fair. This could involve introducing a more progressive tax system, reducing tax rates, and increasing tax compliance.
- Diversification of revenue sources: The government should diversify its revenue sources to reduce its dependence on a few sources of income. This could involve investing in infrastructure, promoting tourism, and encouraging entrepreneurship.
- Improved governance: The government should improve its governance structures to ensure that tax revenue is used effectively and efficiently. This could involve strengthening institutions, increasing transparency, and promoting accountability.
Conclusion
In conclusion, Abati's article highlights the need for a comprehensive review of Lagos State's tax policy to address the state's fiscal crisis. The government must prioritize transparency, accountability, and fairness in its tax policy to ensure that the state's economy is sustainable and that its citizens are able to benefit from its resources.