1.1  Background To The Study

Tax constitutes a system of raising money from corporate institutions and persons unbehalf of the government for developmental programmes.

Tax is a compulsory contribution imposed by government on eligible tax payers in the country to aid in the financing of government expenditures in the provision of essential services such as education, health services, road constructions, security, social payments etc.  tax are imposed  for reason of regulating  the production of certain goods and services, protection of infant or certain key industries, Curbing inflation and meeting operational costs of governance. Taxes are also   imposed to mitigate the consumption of certain undesirable goods and services, correct   the country’s balance of payment and attract investors. Regulate certain economic activities; bridge the inequality gap between the rich and the poor. Consequently in order to  achieve these  tax objectives, the  government implement  different types of tax  system such as “Pay As You Earn, (PAYE), Value added tax (VAT), Excise duties etc .The research seek to proffer an  assessment of Nigeria tax system and it effect on educations system of  public sector





1.2  Statement of the Problem

A fundamental functions of government is the responsibility to provide essential service and infrastructure for the wellbeing of the people such as the provision of education, health facility, security, good roads, quality education etc. Therefore to achieve this objective of government, it became necessary for government to impose taxes on eligible persons and institutions in the country to raise additional financing to meet these services. Consequently government has always formulated various tax laws, policies and system to meet the challenges of raising additional revenue.  They include:  Income Tax Management Act (ITMA), Companies Income Tax Decree (CIID), Joint Tax Board (JIB) etc.  as a measure of  ensuring adherence to tax payment and discouraging tax evasion and avoidance.  Therefore the problem confronting the research is to proffer an Assessment of Nigeria tax system and it effect on educations system of public sector




1.3  Objectives of the Study

To determine the Nigerian   tax system


To determine the effect of Nigerian tax system on educations system of public sector



1.4  Research Questions

What is the nature of the Nigerian tax system

What is the effect of the  Nigeria tax system on educations system of  public sector


1.5  Significance of the Study

The study shall elucidate on the nature of Nigeria tax system and it effect on educations system of public sector


1.6 Research Hypothesis (If Necessary)

1.7 Scope of the Study

The study focuses on the Assessment of Nigeria tax system and it effect on educations system of public sector


1.8 Limitations of the Study

The study was confronted by some constraints including logistics and geographical factor

1.9 Definition of Terms

TAX:       A compulsory sum of money imposed by the government on its citizen for the provision of public goods and services.

TAX BASE:  This is the object which is taxed for instance personal income, company profit.

TAX RATE:  The rate at which tax is charged.

TAX INCIDENCE:  It offers to the effect of and where the burden is finally rested.

FBIRS:    Federal Board of Inland Revenue Services.  It is an operational arm of Federal Board of Inland Revenue which is responsible for the Federal Tax matters.

CITA:      Company Income Tax Act (CITA) is a federal law operated by the FIRS, which deals with the taxation of all limited liability companies in Nigeria with the exception of those engaged in petroleum operations.

JTB:        Joint Tax Board (JTB) is established under Section 85(1) of Decree 104 of 1993 to arbitrate on tax disputes between one state tax authority and another.

VAT:       Value Added Tax is a multistage tax levied and collected on transactions at all stages of sales and distribution.

CGTA:     Capital Gain Tax Act is an act that stipulates that all capital gains arising on disposal of asset of individual partnership and limited companies should be taxed.

PPTA:      Petroleum Profit Tax Act is an act that regulates the petroleum profit tax and also specifies how profit from petroleum will be taxed.

WITHHOLDING TAX:      This is tax charged on investment income namely: rents, interest, royalties and dividends, presently it is charged as the tax offset.

PROGRESSIVE TAX:       This is a tax incidence that increases as the size of income increases.

REGRESSIVE TAX:  A tax is regressive when its tax rate decreases as the income increases.

EXCISE DUTIES:    These are taxes on some goods manufactured within a country.

PERSONS:      It includes all taxable persons whether it be individual or corporate bodies.