What is the history of taxation?
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What is the history of taxation?
The first record of organized taxation comes from Egypt around 3000 B.C., and is mentioned in numerous historical sources including the Bible. Tax practice continued to develop as Greek civilization overtook much of Europe, North Africa and the Middle East in the centuries leading up to the Common Era.
When did taxation started in Nigeria?
1904
Nigeria tax system is historical (Odusola, 2006) dates back to 1904 when the personal income tax was introduced in northern Nigeria before the amalgamation, through the Native Revenue Ordinances 1917 the West, the Direct Taxation Ordinance No.
Who introduced tax in Nigeria?
The introduction of tax by the British Colonial Administration in the Northern Nigeria Protectorate in 1904 was a function of the prevailing circumstances at the onset of colonial administration in this part of the country.
What is taxation in Nigeria?
Tax rates. Taxable income is assessed to tax at graduated rates ranging from 7 percent to 24 percent, depending on the income band being assessed. Non-residents are subject to the same tax rates as residents. The maximum tax rate is currently 24 percent of an individual’s income.
When was taxation introduced?
The Constitution gave Congress the power to impose taxes and other levies on the general public. While the Civil War led to the creation of the first income tax in the U.S., the federal income tax as we know it was officially enacted in 1913.
When did the taxation start?
Income tax was first imposed on personal wealth in Britain in 1798, to pay for the wars with Napoleon. It was billed as a ‘temporary’ measure, renewable annually by Parliament – and has remained so ever since (it still expires on 5 April every year).
Who collects Nigeria tax?
The federal government
The federal government through the Federal Inland Revenue Service (FIRS) collects VAT in each of the 36 states of the federation, remitting certain percentages to state and local governments every month.
What are the types of taxes in Nigeria?
Types Of Taxes In Nigeria
- Companies Income Taxes (CIT) CIT is one of the major types of taxes collected by FIRS.
- Value Added Taxes (VAT)
- Withholding Taxes (WHT)
- Petroleum Profits Taxes (PPT)
- Personal Income Taxes (PIT)
- Stamp Duties (SD)
- Capital Gains Taxes (CGT)
- National Information Technology Development Levy (NITDL)
What is the importance of taxation?
Taxes are crucial because governments collect this money and use it to finance social projects. Without taxes, government contributions to the health sector would be impossible. Taxes go to funding health services such as social healthcare, medical research, social security, etc.
Who introduced tax?
19th and early 20th centuries. British rule in India became established during the 19th century. After the Mutiny of 1857, the British government faced an acute financial crisis. To fill the treasury, the first Income-tax Act was introduced in February 1860 by Sir James Wilson (British India’s first finance minister).
When was the first tax system introduced in Nigeria?
The modern taxing system by the Federal Government of Nigeria under it taxation arm; Federal Board of Inland Revenue (FBIR) could be traced back to the year 1939 when the Companies Income Tax Ordinance was created.
What was the Islam taxation in Nigeria?
Based on historic-data, regions in Nigeria that were under the Islam taxation had several forms of taxes: Zakat – it`s an obligatory tax presented by all representatives of the Islamic religion. It was gathered for educational, religious and spiritual purposes. – Isha-Kole – this tax was to be paid to community leaders or chiefs;
What are the different types of taxes in Nigeria?
According to the Nigerian Laws, there are three legal bodies that can levy the taxes on Nigerians. – Federal Internal Revenue Service. They are responsible for Capital Gain Tax, Educational Tax, Value Added tax, Withholding tax, Companies Income Tax, Personal Income tax.
Who is responsible for tax administration in Nigeria?
Tax administration in Nigeria. The administration of tax is vested in various tax authorities depending on the type of tax under consideration. In Nigeria, there are three (3) authorities namely; (a) Federal Board of Inland Revenue.