THE IMPACT OF E-GOVERNANCE ON TAX REVENUE GENERATION IN NIGERIA

Abstract

The purpose of governance is to make life conducive for the citizens through the provision of basic social amenities including the security of life and property. To accomplish these objectives, the government needs to raise revenue through taxation. However, the twin problems of tax evasion and tax avoidance often affect the ability of the government to generate revenue. In a determined effort to increase tax compliance such that it can raise enough revenue to execute its projects, the government adopted e-taxation as a component of its e-governance initiative in line with global best practices. This paper adopted a qualitative research method, making use of ex-post facto secondary data which involves an extensive literature review of articles, journals, periodicals, reports, and relevant tax laws. The study revealed that e-taxation is convenient and has helped reduce calculation errors on the tax returns filed by taxpayers, minimize revenue leakages and fraud, eliminate reconciliation challenges, increase the amount of revenue generated, and save time and cost for taxpayers. The study therefore recommends that tax administrators at all levels of governance should shift towards e-taxation, and embark on more citizens’ enlightenment on the importance of shifting from manual taxation to electronic taxation. With increased knowledge by taxpayers, the level of tax compliance will continuously increase with a positive impact on tax revenue generated.