A desirable tax system is typically described as one that raise requisite funds to support the cost needed public services without constant rate adjustments, alters economic choices as little as possible excepted to correct identified problems, is certain and inexpensive for tax administrators to run, and relieves agreed upon distributional goals23.

            The Nigeria taxing system is lopsided, and dominated by oil revenue. It is also characterized by unnecessarily and largely inequitable taxation laws that have limited application in the informal sector that dominates the economy. In the early stage Nigeria, there was an organized taxing system in the northern part of the country, unlike other part of the country. In recent times, the Nigeria tax system is basically structures as a tool for revenue times, the Nigeria tax takes the form of a pecuniary burden. The tax charge is usually on the income or gains of the taxpayer but sometime it is on expenditure.
            As earlier stated, Nigeria’s tax system is plagued by several problems, which have not been adequately tackled for many year24. tax system in Nigeria has undergone tremendous changes since independence.
            Following inconsistencies and apparent confusion in the operation of various tax systems in the northern, western and eastern regions of the country. Raisman fiscal commission of 1938 recommended that there should be a uniform basic principle for taxing income throughout the country. It was this recommendation that was embodied in the Nigeria constitution order in council 1960, which eventually in the enactment of the Income Tax Management Act 1961 (  ITMA) was the precursor to Companies Income Tax Acts 1961, 1979 and 1990 as well as the Personal Income Tax Act 1993 as amended.
            The personal income tax degree 104 of 1993 for example is a legislation that regulates personal taxation in Nigeria. It regulates the assessment and collection procedure for the individuals or body of individuals including a family, any corporation sole, trustee or executor having any income, which is chargeable with tax under the provision of the Decree. The provisions of the decree are to apply throughout the federation except as therein provided. In Nigeria it is only the federal government that can legislate in tax matters. However, the administration of personal income tax law is delegated to the state governments each state is expected to administer the law in accordance with the provisions. The following are some of Nigeria relevant tax regulations.
a.                  Value Added Tax (VAT): This was introduced by the VAT decree No 2 of 1993, to replace the old sales tax, it is a consumption tax levied at each state of the consumption chain, and is born by the final consumer.
b.                  Capital Gain Tax: This occurs on an actual year basis and it pertains to all gain accruing to a tax payer from the sale or lease or other transfer of proprietary right in a chargeable interest which are subject to a capital gain tax of 10%
c.                  Educational Tax: An educational tax of 2% assessable profit is imposed on all companies incorporated in Nigeria. This tax is viewed as a social obligation placed on all companies in ensuring that they contribute their own quota in developing educational facilities in the country25.

23 John. M. Peha, Robert P. Strains “National Association Spring Symposium”. Arlington, Virginia, 1997  
24 Nigeria institute of Advance legal studies Lagos, Nigeria “Colloquium on the Tax Payers money” 19th January 2011
25 on 20th July 2011
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