Islamic Perspective on the Impact of Ethics and Tax for Nigerian Economic Development

<p>The tax system, policies, and structures have been one of the significant <br />factors that directly affect the social and economic activities of any nation. <br />Despite the importance of tax, the attitude of the taxpayers, their reaction <br />concerning tax, could in greater sense facilitate or draw back the policies <br />and system from their original intention and purposes, particularly from <br />an Islamic perspective. Islamic tax income is for the benefits of poor, <br />needy and less privileged people in the society. Even though, policies on <br />tax approved tax avoidance and made it legal, however, tax evasion is <br />illegal in all society because it will deviate from its purpose. The most <br />significant point, however, evading taxes by the people is viewed as <br />unethical behaviour in any economy as the consequences could be greater <br />to the economy and society. Several countries used Islamic system of tax <br />because of the ethics of the system and possibly fewer evasions by the <br />Muslims. Given that, with the number of the Nigerian Muslims, <br />adoption of Islamic tax system will improve the revenue generation, and <br />thereby enhance the economic development of Nigerian economy.