This chapter looks at various knowledge exhibited and produced by persons and authorities related to the subject under study. Literature review discusses or treats some ideas already in books, journals or websites that throw lights on the topic under research. An attempt is also made to examine carefully some time tested procedures and the challenges the Revenue Authorities faces when mobilizing revenue.
Various scholars and administrative practitioners have put out a lot of theories, concerns and views on GRA’s ability to mobilize revenue and how these monies mobilized are spent. Among the reasons assigned by such concerns and opinions is, the challenges of the GRA administration is to be blamed on inadequate revenue mobilization, due to lack of mission or comprehensive functional role, and lack of proper structure ( i.e. the role of GRA in the development process were not known)
Moreover, the GRA’s administration is often characterized with inefficient, and officials inappropriately manage large amounts of revenue collected. As a result, many towns and cities face a governance crisis and poor service delivery capability. Consequently, the intergration of CEPS, IRS and VATS and finances between them has entered the core of the development debate.
It, therefore, becomes imperative that domestic resource mobilization is enhanced as a strategy for sustained growth and development, more especially when the current global financial crisis has resulted in the erosion of trade credit and a reduction in foreign direct investment inflows, exports, remittances and earnings from tourism.
The Definition And Concept Of Revenue
In business, revenue or turnover is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover. Some companies receive revenue from interest, royalties, or other fees The Oxford Advanced Learner‘s Dictionary definesrevenue as the money that a government receives from taxes and other sources. In simple terms, Revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover. Some companies receive revenue from interest, dividends or royalties paid to them by other companies (Carcello, 2008).
Revenue may refer to business income in general, or it may refer to the amount, in a monetary unit, received during a period of time. Profits or net income generally imply total revenue minus total expenses in a given period. In accounting, revenue is often referred to as the "top line" due to its position on the income statement at the very top. It past, the function of the government was limited to maintaining internal law and order and to protect the country from foreign aggression. Unlike past, the current thinking is —“That government is the best which does the least”. But there is consensus among economists that the government should play active role in providing social services like education, health, nutrition, sanitation and economic services like electricity, road, communication, irrigation and so on. The government needs adequate revenue to undertake these functions. Hence, public revenue deals with how the government raises revenue from different sources, what are the effects of raising revenue and what measures should be taken by the government to minimize the adverse effects. Public revenue is an important organ of public finance. According to Dalton, public revenue has both narrow and broad meaning: “In broad sense, public revenue includes all income and receipts received by the government. But in a narrow sense, public revenue includes only the revenue received from taxes”. Since the revenue should increase in proportion to the increase in...
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