THE PROBLEMS OF TAX COLLECTION AND REVENUE GENERATION IN ENUGU STATE (A CASE STUDY OF ENUGU SOUTH LOCAL GOVERNMENT)

Description

ABSTRACT

This research was on the problems of tax collection and revenue generation in Enugu South Local government system. Enugu south seems to have failed in their responsibility of providing essential basic services to their citizen because of inadequate fund. However, the researcher was bordered to know whether it is because of inadequate funds that essential services are not provided for people in the local government. Thus, the objective of this research was to identify the problems hampering tax collection and revenue. The researcher obtained the data through the application of primary and secondary data collection, that is by the administration of questionnaire and literature review. Data collected was presented in tabular forms and expressed in simple percentages. Among the findings of the work were that the local government had inadequate staff including unskilled personnel. The problem of infrastructure and regular assessments of organizations were also observed. The researcher recommended that government should provide basic infrastructural facilities and that workers should be encourage so that they would put in their maximum service. It was also recommended that government should increase revenue allocation system to boost taxation drive.

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

The history of revenue generation dates back to precolonial and colonial era. The chief or traditional rulers were seen as the symbol of power and as such, where solely responsible in revenue, generation to take are of the developmental needs of the society like building town halls, building of schools, entertainment of visitors, community scholarships to indigenes among others.

Presently, the local government authority generate funds o handle the developmental needs of the people primary through federal government grants,

or allocation and taxes. Thus, tax is one the major sources or in instruments for revenue generation in the local government system in Nigeria. Theses taxes rangers from personal in come tax pay as you earnpayee levies, haulage royalties and many others.

These taxes collected are usually meant for various projects designed for the development of Enugu south local government and to improve the living condition of the people, most especially as this is the last tier of government that interact with the people at the grass root in the rural areas.

Unfortunately, revenue generation and tax collection at the local government level has to been efficient and effective due to some inhernet problems. Local government authorities have equally failed in their responsibilities of revenue generation and tax collection because of these envisaging problems.

Hence, one may tend to raise questions on why it is so. Enugu state is not an exceptional in this development. They equally face some problems in their effort to raise revenue. In this research work, the crux is to investigate to identify some of this problems using Enugu south local government as a case study. Enugu south is a new local government created on August 1991. within Enugu urban this was constitutional responsibilities like every other local government.

STATEMENT OF THE PROBLEM.

Every local government council require substantial amount of money to execute its primary function of providing essential services to the people. And one of the ways of generating fund is through collection of taxes.

But the local government system in Enugu south seems to have failed in their responsibilities of providing essential basic services to their citizens because of inadequate fund. This is characterized by lack of health care facilities, collapse building in most primary schools, poor access roads, and other social amenities to better the lives of the people at grass root level.

However, the researcher is bothered know whether it is because of inadequate funding that essential services are not provided for people in the local government. Does it mean that tax collections are not duely collected the way it is supposed to be. What are the problems hindering adequate tax collection and other internally generated revenue. How could it be improved This study therefore is set to investigate into this problem hindering adequate collection of internally generated revenue. Possible solution and method adopted for its collection.

1.3 OBJECTIVE OF THE STUDY

The main objective of the study is to find out the problems associated with revenue generation and tax collection in Enugu south local government. This means that the researcher will attempt to establish the method associated with revenue generation and tax collection in Enugu south local government.

Specifically, the objective includes.

To find out what could be the inherent problems hindering internally generated revenue in Enugu South local government.

To identify the method used for tax collection and revenue generation in Enugu out local government.