Taxes are the primary source of revenue generation for governments, and it's not a practice that started today. Tax payments can be traced back thousands of years, and the only difference is the upgrades in tax systems made by different countries. You will agree with me that the purpose of collecting this levy still remains the same: the government uses our tax to build infrastructure and as well run the affairs of the country.
Tax happens to be a compulsory levy, and that's why the government doesn't take things lightly with tax defaulters.
Despite the importance of tax to the government in different parts of the world, it's not the same case in many third-world countries where the government can't even keep track of the citizens properly, not to speak of making it compulsory for the citizens to pay, but somehow, we all still pay tax.
I have heard people argue and feel smart about not paying tax, but they are wrong since we all pay tax indirectly through VAT (value-added tax) on products, and it's inevitable as long as you go out there to purchase products. Tax payment, like I mentioned earlier, is compulsory, and it's sad that governments in different countries, especially in Nigeria, aren't doing the needful with this levy, despite some citizens trying as much as possible to keep up with the levy.
Recently, I told someone that before you read about one development in Nigeria, you must have read about ten embezzlement stories, and it annoys me a lot because these stolen funds are the citizens sweats.
It's not my first time discussing government issuing tax based on how rich an individual is, and my stance on this subject would remain the same. Before I go on, I will like to state that there are different types of taxes, and naturally the wealthy ones will always pay more due to property tax and others, but the compulsory tax levy for every citizen should remain the same.
Honestly, it feels like the average citizen has been cheated since they aren't earning as much as the wealth, but that's not the case. Let's imagine that there are some roads or other infrastructure in the country that only the wealthy can access since many people think it's unfair when the average and wealthy citizens pay the same tax.
I can bet that many citizens will attack the government for doing that, but they have forgotten that the wealthy are paying more. Already the system favors the wealthy, but we are now left out since we can access the same road they use, visit the same general hospital, and others.
Giving a higher percentage of tax will bring more inequality to our unbalanced society, and I fear what the aftermath will be. I won't deny the fact that there are many people who are struggling to keep up the tax levy, especially with the global recession, and the only way the government can ensure that there is fairness with tax payment is by making life easier for every citizen of the country.
How can this be achieved?
Recently, the Nigerian labor force demanded an increase in the minimum wage, and the government didn't meet up with their demands. Although there was an increase, it's not enough to survive in the turmoil our leaders have landed the country in. Despite the stipend they pay as salary, tax is compulsory. My point is that paying workers an adequate salary would make life a lot easier for them after paying their taxes.
Another approach to making life easier is creating stability for the crumbling economy of Nigeria. When the economy is stable and the naira appreciates in value again, people can easily pay their taxes. With these things in check, the average citizen and the wealthy can pay their taxes without anyone feeling cheated.
I believe that taxation is a very important factor that must be in place for a functioning society, but where is the value in it when there is not fairness, equality, and even responsible governance to allocate and use the funds properly? It's difficult as citizens due to the terrible economic state of the country, but we must recognize the importance of taxes as the source of many infrastructures we are enjoying today.
Instead of advocating for a difference in percentage, I would prefer we channel our energy more on transparency on how our taxes are put to use and accountable governance.
