Impact of Finance bill on PITA.
Taxation has a significant influence for the conduct of public policy and it applies to countries that are either developed or developing. It is a general knowledge that taxation contributes in government economic stabilization and income re-distribution by attaining high rate of revenue generation. We can say taxation is a key factor of public policy that is essentially concerned with the manipulation of financial operation of both the government and non-government sectors with a view of furthering certain economic objectives. In Nigeria, these economic objective includes the attainment of appreciable level of full employment, avoidance of excessive inflation, achievement of satisfactory balance of payment position, appreciable increase in the national income and a reduction of extreme inequality among the citizens, provision of other essential necessities of life like water, schools, building of bridges, roads and so on.
Although, taxation is not the only source of revenue for the government, other sources are:
- Fines and fees
- Rent on government quotas
- Interest
- Dividends and royalties on government and so on.
However, taxation remains the major source of revenue for the government in Nigeria. In a bid to improve economic growth; government initiates financial policies by the means of annual budgets and tax laws to fund and provide necessary extension services for business enterprises and also using various government financial policies to guarantee certain allocation of funds for small scale businesses.
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