What is progressive about Nigerian personal income tax?

Abstract

This paper conceptually critiques the progressivity of the current personal income tax in Nigeria by drawing on the equity concept of taxation vis-à-visincome redistributionandtaxpayers’ ability to pay tax. Whilst the study acknowledges the presumed progressivity and income redistribution notions embedded within the personal income tax regime, it provides conceptual analysis that consequently contradicts such notions in practice. Overall, the analysis suggests that the current personal income tax regime is more pro-rich than it is pro-poor, thus requiring the factoring in of the economic realities of the non-rich when amending the tax law in the future.

Keywords: Personal income tax, progressive tax, equality/equity canon, income redistribution