SWOT Analysis: A Case of a Sub-National Tax Authority Presented by Mustapha Ndajiwo ATRN CONGRESS 2016, MAHE, SEYCHELLES
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SWOT Analysis: A Case of a Sub-National Tax Authority
Presented byMustapha Ndajiwo
ATRN CONGRESS 2016, MAHE, SEYCHELLES
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INTRODUCTION
This research is a case study of a , a second tier sub-national tax authority; the Niger
State Internal Revenue Service of Nigeria
It is a diagnosis of the organisation vis-à-vis Internally Generated
Revenue (IGR).
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RESEARCH PROBLEM
The fall in the federal allocation to the states due to the fall
in oil revenue has exposed the inefficiency of the Niger
State Internal Revenue Service.
This development has forced the state to borrow funds to
pay the salaries of its civil servants and left budget
financing in limbo because the Internally Generated
Revenue is very low.
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RESEARCH QUESTIONS
What are the challenges facing the Niger State Internal Revenue
Service?
What are the ways to mitigate the challenges faced by the Niger State
Board of Internal Revenue?
RESEARCH OBJECTIVES
To improve tax administration at the Niger State Internal Revenue by:
- identifying the challenges and opportunities of Niger State Internal
Revenue Service.
- Making recommendations that will lead to an increased internally
generated revenue for the state.
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SIGNIFICANCE OF RESEARCCH
- Efficiency of sub-national tax authority
- Reduce reliance on oil revenue and federal allocations
- Contribution to the existing body of knowledge
- Improving IGR
METHODS
Informal Interviews and Observations
SWOT Analysis
Studying reports
Other Country studies
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Taxes and levies collected by NSIRS
• Personal Income Tax in form of Pay As You Earn (PAYE) or
Income Tax.
• Right of Occupancy Fees on lands owned by the State
Government in the Urban Areas of the State.
• Market Taxes and levies in markets financed by the State.
• Naming of street registration fee in the State Capital
• Capital Gains Tax for individuals
• Withholding Tax for individuals
• Stamp duties on instruments executed by individuals
• Pools betting and lotteries, gaming and casino taxes
• Business premises registration fee in respect of Urban areas
• Ground Rent
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IGR 2008 - 2014
YEAR TOTAL IGR in Naira
2008 2,309,892,011.72
2009 2,766,787,900.46
2010 2,930,657,530.09
2011 3,588,768,330.83
2012 3,782,827,634.99
2013 5,097,373,027.19
2014 5,150,560,614.99
Source: Niger State Internal Revenue Service
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OTHER COUNTRY LESSONS
Ghana: Tax Stamps
Tanzania: The Block Management System
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FINDINGS/SWOT NSIRS
Political Will
Legal Framework
Clear Vision and Mission
Voluntary Compliance
Stakeholder Relationship
Underutilised Revenue Sources
Newly Registered Businesses
Audit
Lack Of Autonomy & Poor Remuneration
Under Staffing &Weak Capacity
Poor ICT Framework & Cash Payments
Weak Appraisal System
Poor taxpayer database & obsolete rates
Informal Sector
Non-compliance
Low Tax Morale
Non-remittance of tax by some ministries,
departments and agencies (MDAs)
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RECOMMENDATIONS
• Administrative and Financial autonomy
• Organisational restructure:
- Comprehensive training program
- Staff morale (Remuneration and Placement)
- Employ professionals and employ based on
organizational needs
• Organization's policy of non-direct cash transactions
• Cost-benefit approach to use of consultants with a
sunset clause
• Invest in IGR generating potential: Agriculture, tourism,
and solid minerals
• A special office dedicated to the informal sector;
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RECOMMENDATIONS
• Consider the Block Management System
• The Ghana Stamp System in tandem with the 1%
minimum tax
• The Government of Niger state should invest in boosting
the tax morale of the Taxpayers
• The Ministry of Finance in Niger State should work
closely with the Niger State Board of Internal Revenue to
have a marshal development plan that will ensure that
taxation is linked to the development of the state.
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CONCLUSION
The SWOT analysis revealed that Niger State Board of
Internal Revenue has immense potential in improving tax
administration and raising the required revenue that will
reduce its reliance on the federal government allocation
Granting the Niger State Board of Internal Revenue
autonomy and improving the welfare and capacity of its
staff as well as ensuring accountability and upholding the
social contract between the government and the citizens
will be critical in ensuring that tax administration in Niger
state is revamped to meet global standards.
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Limitations & Areas of Improvement
No data on tax by tax type for detailed
analysis
Questions on Audit
Comparison with other State Revenue
Authorities in Nigeria
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