Between Tax And Tithe Which Is Compulsory In Nigerian Harsh Economy? BY PROF PROTUS UZOMA

The Author, Prof Protus Uzoma

The origin of tax payment dates back to ancient civilizations, with evidence of taxation found in ancient Egypt, Greece, and Rome. As noted by historian and sociologist, Joseph Schumpeter, “Taxation is as old as civilization itself.”

The word “tax” derives from the Latin “taxare,” meaning “to assess” or “to value.” (Oxford English Dictionary) Taxation has evolved over time, with various forms and purposes, but its core principle remains the same: to redistribute wealth and fund public goods and services.

In Nigeria, tax payment has played a crucial role in socioeconomic development. As scholar and economist, Professor Akpan Ekpo, notes, “Taxation is a veritable instrument for promoting economic growth and development.”

Taxation has several positive effects on socioeconomic development, including: Revenue generation for public goods and services, Redistribution of wealth and reduction of income inequality. Encouragement of economic growth and investment, promotion of social justice and fairness to mention but a few. As scholar and political economist, Mushtaq Khan, argues, “Taxation is a key instrument for creating a more equitable and just society.”

In other countries, tax payment has also had a significant impact on socioeconomic development. For instance, in Scandinavian countries, high taxation has funded comprehensive social welfare systems and public services, contributing to high levels of human development and social equality.

As scholar and economist, Ha-Joon Chang, notes, “Taxation is not just about raising revenue; it’s about creating a more equal and just society.” Tax payment has its roots in ancient civilizations and has evolved over time to become a crucial instrument for socioeconomic development. As scholars and policymakers continue to debate and refine taxation policies, the importance of taxation in promoting economic growth, social justice, and human development remains unequivocal.  The question of whether it is advisable and justifiable for Nigerian citizens to pay both tithe and taxes amidst the poor economic situation is a complex and sensitive issue. On one hand, paying tithe is a religious obligation for many Nigerians, and it is seen as a way of giving back to the community and supporting the religious institutions that provide spiritual guidance and support. Additionally, tithes are often used to fund charitable activities and support the less privileged.

On the other hand, paying taxes is a civic duty and a necessary aspect of citizenship. Taxes are used to fund public goods and services that benefit society as a whole, such as infrastructure, education, and healthcare.

However, the current economic situation in Nigeria is characterized by high levels of poverty, unemployment, and inequality. Many citizens are struggling to make ends meet, and the burden of paying both tithe and taxes can be overwhelming. In this context, it is important to consider the principles of fairness, equity, and social justice. While paying tithe and taxes is important, it is equally important to ensure that the burden is distributed fairly and that those who are most vulnerable are not disproportionately affected.

One possible approach is to encourage religious institutions to use tithes in a way that benefits the community and supports the most vulnerable members of society. This could include initiatives such as food banks, education programs, and healthcare services. Similarly, the government should ensure that taxes are used efficiently and effectively to benefit all citizens, and that those who are most in need receive the support they require.

Ultimately, the decision to pay tithe and taxes is a personal one that depends on individual circumstances and beliefs. However, it is important to approach this issue with sensitivity, compassion, and a commitment to social justice. The misappropriation of taxpayers’ money by Nigerian political leaders is a complex issue deeply rooted in corruption and a lack of accountability. The country’s political system is plagued by a culture of corruption, with leaders often prioritizing their personal interests over the public good. This has led to a systemic failure of governance, with widespread corruption and embezzlement of public funds.

One of the main reasons for this corruption is the lack of effective checks and balances on power. Political leaders often use their positions to enrich themselves and their associates, with little fear of repercussions. This has created a culture of impunity, where leaders feel they can act with disregard for the law and the public interest.

Another factor contributing to corruption is the influence of patronage and clientelism . Political leaders often use public resources to reward their supporters and maintain their power base, rather than allocating them based on merit or need. This has created a system where political connections and favors are more important than competence or integrity.

The lack of transparency and accountability in government also contributes to corruption. The absence of a free and independent press, as well as the lack of access to information, makes it difficult for citizens to hold their leaders accountable. This has created an environment where corruption can thrive, with little scrutiny or oversight.

The consequences of this corruption are far-reaching, with the most vulnerable members of society often bearing the brunt. The misappropriation of public funds means that essential services such as healthcare, education, and infrastructure are often underfunded, leaving citizens without access to basic necessities. This has perpetuated poverty, inequality, and social injustice, undermining the country’s development and stability.

To address this corruption, Nigeria needs a fundamental transformation of its political system. This requires strong institutions, effective checks and balances on power, and a culture of transparency and accountability. Citizens must also demand more from their leaders, holding them accountable for their actions and advocating for a more just and equitable society. Tithe payment is a religious practice where individuals donate a portion of their income or resources to support religious institutions, charities, or community development projects. The concept of tithing originated in ancient religious traditions, such as Judaism, Christianity, and Islam. The main differences between tithe and tax payment are: Voluntary vs. Mandatory: Tithe payment is typically voluntary, while tax payment is mandatory.  Religious vs. Secular: Tithe payment is often linked to religious beliefs and practices, whereas tax payment is a secular obligation to the state.

Purpose: Tithe payment usually supports religious or charitable causes, whereas tax payment funds public goods and services.  Amount: Tithe payment is often a fixed percentage (usually 10%) of one’s income, whereas tax payment varies based on income level and tax rates. Enforcement: Tithe payment is not legally enforceable, whereas tax payment is enforced by law. Benefits: Tithe payment is believed to bring spiritual benefits and social goods, whereas tax payment provides access to public goods and services. Accountability: Tithe payment may not be subject to the same level of accountability and transparency as tax payment. Tax payment is compulsory, while tithe payment is typically voluntary.

Tax payment is a legal requirement, and individuals are obligated to pay taxes to the government to fund public goods and services. Failure to pay taxes can result in penalties, fines, and even legal action. On the other hand, tithe payment is a religious or moral obligation, and individuals are encouraged to give a portion of their income to support their religious community or charitable causes. However, there is no legal requirement to pay tithes, and individuals cannot be forced to do so.

Tax payment is compulsory and enforced by law. Tithe payment is voluntary and encouraged by religious or moral principles, but not legally required.  In Nigeria, the percentage of people paying taxes is relatively low. According to a report by the Nigerian Federal Inland Revenue Service (FIRS), only about 10% of the country’s population pays taxes. This translates to around 20 million people out of a population of over 200 million. One of the main reasons for this low percentage is the large informal sector in Nigeria, which accounts for a significant portion of the economy. Many small businesses and individuals in the informal sector do not pay taxes due to a lack of awareness, evasion, or avoidance. Additionally, Nigeria’s tax system has faced challenges such as corruption, inefficiency, and a lack of trust in government. These issues have contributed to widespread tax evasion and a general reluctance to pay taxes.

However, the Nigerian government has been taking steps to improve tax collection and expand the tax base. Initiatives such as the Tax Identification Number (TIN) registration, the Voluntary Assets and Income Declaration Scheme (VAIDS), and the Presidential Enabling Business Environment Council (PEBEC) aim to increase tax compliance and reduce evasion.

Despite these efforts, tax payment remains a significant challenge in Nigeria. The government continues to face difficulties in collecting taxes, and the country’s tax-to-GDP ratio remains one of the lowest in the world. Overall, the low percentage of people paying taxes in Nigeria is a complex issue requiring sustained efforts to address the underlying challenges and improve tax collection.

 During his time, Jesus Christ addressed the issue of tithing and tax payment in a way that emphasized the importance of prioritizing one’s relationship with God and treating others with love and respect. When asked about paying taxes to the Roman authorities, Jesus taught that people should “render unto Caesar what is Caesar’s and unto God what is God’s” (Matthew 22:21). This response acknowledged the obligation to pay taxes while also emphasizing the importance of giving to God what is due to Him.

Regarding tithing, Jesus criticized the Pharisees for their emphasis on tithing while neglecting more important aspects of their faith, such as justice, mercy, and faithfulness (Matthew 23:23). He taught that true righteousness goes beyond mere external observances like tithing and encompasses a deeper transformation of the heart. Jesus also taught that one’s relationship with God is not measured by external actions like tithing or tax payment but by the condition of one’s heart and how one treats others (Mark 12:41-44). He emphasized the importance of loving one’s neighbors and enemies, and taught that true devotion to God is demonstrated through acts of love and compassion.

In summary, Jesus’ teachings on tithing and tax payment emphasized the importance of prioritizing one’s relationship with God, treating others with love and respect, and recognizing that true righteousness goes beyond external observances.

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