TAX ADMINISTRATION IN THE INFORMAL SECTOR: KWARA STATE INTERNAL REVENUE SERVICE PERSPECTIVE

Mohammed Aminu Yaru (), Mohammed Aminu Yaru and Muritala Awodun
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Mohammed Aminu Yaru: University of Ilorin, Ilorin, Postal: Department of Economics, http://www.ijep.org
Mohammed Aminu Yaru: Kwara State Internal Revenue Service, Ilorin, Postal: Research and Data Gathering Department, http://www.ijep.org
Muritala Awodun: Kwara State Internal Revenue Service, Ilorin, Postal: Office of the Executive Chairman, http://www.ijep.org
Authors registered in the RePEc Author Service: Mohammed Aminu Yaru

Ilorin Journal of Economic Policy, 2019, vol. 6, issue 6, 1-12

Abstract: Taxation in the informal sector has been very challenging for most tax authorities in Nigeria. The sector is largely characterised by low voluntary tax compliance. This study examines the challenges facing tax administration in the informal sector in Kwara State and the impact of measures taken by Kwara State Internal Revenue Service (KW-IRS) particularly, the Community Impact Programmes (CIPs)—direct and indirect intervention programmes to inspire voluntary tax compliance in the informal sector of the State. Survey research design was used for the study. A total of 56 staff from a population of 83 staff deployed to the Informal Sector Directorate of KW-IRS as at the period of the survey were sampled and descriptive statistical methods were used to analyse the results. The study finds that CIPs are impactful, but would not suffice in sustaining high level of tax compliance. Government therefore should provide basic social amenities to citizens in order to inspire voluntary tax compliance, and enforce penalties for those who evade tax payment.

Keywords: Tax Administration; Informal Sector; Kwara State (search for similar items in EconPapers)
JEL-codes: H21 H26 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:ilojep:0017

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