EFFECTIVE IMPLEMENTATION OF THE SELF-ASSESSMENT SYSTEM OF TAX COLLECTION IN THE INFORMAL SECTOR IN NIGERIA

Abstract

This paper reviews the taxation of the informal sector in Nigeria. There is no doubt that the supposed revenues from the informal sector in Nigeria are not being taxed effectively and extensively. Most times the sector is not even captured in the tax net. The greater percentage of tax is collected from the formal and salaried workers. The over reliance on revenue from oil has already dwindled and recently Nigeria has relied on loans from developed countries to meet her developmental needs. This paper therefore makes a call for the taxation of the informal sector considering the great percentage of revenue lost in the sector due to tax evasion and avoidance.