TAXING ISSUES

Tax is something that is very prominent but yet loosely guarded in my country. There are actually a lot of taxes that are ignored here but are constitutional. Working in the company I am currently I sometimes engage in financial discussions with my friend who happens to be an accountant. One day we were talking about the deduction in our salaries and what they are used for, this was when she gave me a full breakdown of all the taxes we are meant to pay in the country. I was shocked to find out that there are a total of 9 different taxes that are paid in Nigeria.

PERSONAL INCOME TAX

This tax is a general tax paid by employees and self-employed citizens. It’s for all those working and over the age of 18 but then a lot of people do not pay this tax and a lot don’t even know about it except companies and corporations.

Image by vecstock on Freepik

VALUE ADDED TAX

This is the most popular tax in my country, something everyone pays unwillingly especially when you put your money in the bank. A lot of people complain about how banks deduct charges for transactions they made, well such transactions are what we know as Value added tax.

COMPANY TAX

This tax is paid by every Nigeria registered company, and it is usually charged at the end of the year based on the company's profit. I remember last year my MD did everything to hide the fact that the company made a good level of progress in profits because he was trying to avoid these taxes.

CAPITAL GAINS TAX

I don’t really know much about this particular type of tax, I just know it’s sold after shares and assets are sold and it’s usually 10% for individuals and 20% for organizations which I think is really high for both because I don’t expect taxes to be more than 5%

WITHHOLDING TAX

This is another tax that I don’t understand, truth is I still don't understand most of these taxes even though I know them by name. I mean Why will I pay tax for rent or dividends? Okay let me assume the dividend is a form of profit, I can’t say so about the rent because For me to rent, I’m already losing money and you say I still have to pay tax for losing money…

PAY AS YOU EARN

This is automatically charged from employees' salaries. Turns out my company deducts this alongside the personal income tax making the deduction to be somewhat noticed and annoying.

STAMP DUTY

Why do we have to pay tax for a receipt? One day my boss was complaining bitterly because his containers were seized because of this tax. I feel the rich are the ones who suffer from these taxes though and to be honest, when the accountant told me all the taxes my company pays, I somewhat pitied my boss. But then again, he has the money lol.

CUSTOM DUTY

Why my boss complained about the above tax was because he had already paid this one and he was being asked to pay another one. The custom duty tax is charged from goods imported into the country and it’s usually charged based on the value of the goods. Now you see how the rich suffer.

Image by Drazen Zigic on Freepik

EDUCATIONAL TAX

Now I think this is what makes our government think education is free, because all companies in Nigeria must pay this tax as a small levy to support education in the country.

Out Of all the taxes I mentioned I can only understand the educational tax, Value added tax, otherwise known as VAT, Personal Income tax, Custom duty tax (if it’s fair) and the Company tax. I do not think all other taxes are fair on the citizens but then I’m glad a lot of people have ways of escaping them here because what the hell.

THIS IS MY RESPONSE TO HIVE LEARNER'S PROMPT FOR WEEK 160 EPISODE 3