Key Challenges
The major challenges of the Nigerian tax system, which are well documented, include:
• Multiplicity of taxes and multiple revenue collection agencies.
• A largely fragmented, rudimentary and complex tax system adding to business risk and uncertainty.
• High cost of revenue administration on the part of government and excessive burden of compliance on the part of taxpayers.
• Poor accountability and inability to demonstrate efficient utilisation of tax revenue for commensurate fiscal exchange.
• Growing tax expenditure, erosion of the country’s tax base and arbitrary tax waivers.