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Opinions of Friday, 14 August 2020

Columnist: economicconfidential.com

Role of job creation in revenue generation

Revenue Generations Revenue Generations

‘Taking care of your family first and taking care of yourself’ is what living is all about. However, as job is seen as a task, occupation, or an activity like buying and selling which brings value in cash or kind, to have a job means one is either gainfully employed by an employer or is self-employed.

Day to day economic endeavors in either creating value or satisfying basic living needs are necessary for the continued existence of humans as clearly pointed out by economic development theorists who argue that, human civilization is based on increased economic activities.

Employers and employees pays bills for their basic needs, rates and taxes which is in turn used to finance other jobs for other participants in the economy. These rates and taxes are also used to pay government employees as the government provides laws, rules and regulations and the means to enforce them for a tranquil environment for enterprise to flourish.

Undeniably, peace brings about stable governments which create the enabling laws , rules and regulations that will provide the conducive environment and leveled field for entrepreneurship which will bring about jobs opportunities. This becomes cyclical in nature.

The opposite of this is joblessness, despondency, ignorance which leads to crime and instability in the society. It is imperative that there is a balance and it has to be in check. Most of the times proper implementation of the rules, laws and regulations marks the difference in keeping the checks i.e. between stability and chaos.

The collection of these rates and taxes also gives people the sense of leadership apart from providing the money for good governance. This provide a ‘tiller’ in the boat of the society.

Statistically, Nigeria employment rate, as at 2019, stood at 76.9% while unemployment rate was 23.10% in an estimated population of 200 million. Similarly, unemployment figures for Kano as at 2018 stood at 31.3% and the national youth unemployment rate was 13.72%.

Kano State has a total population about 13 millionas at 2016. With this increasing figures from Kano, the majority of the population are in the rural areas. There is a need for a proper database to help identify the taxable part of these population.

An example of how this works can be made out of the transport regulations. It is known that passenger cars are not allowed to carry goods. So a simple implementation of this regulation means that pickups and trucks will be made available. This will in turn create jobs for drivers and conductors.

Also, this means that taxes will be collected from licensed vehicles and drivers, which also means more sales of fuel, tires, engine oil, batteries and work for mechanics who all , in one form or the other, pays taxes and rates.

Therefore this simple implementation of one business aspect will create more jobs as well as opportunities. Also, the implementation of the inter city parks rules and creation of government designated motor parks will make passenger cars and buses have routes to those locations which provide business opportunities to them at the same time unclogging traffic where illegal parks are.

This unclogging of traffic allow other road users to adequately use their time to conduct other business affairs which ultimately turns the wheel of the economy faster thereby generating more business and more avenues for taxes.

In the trading sector, businesses registration and documentation is a necessary. All businesses must be registered and be known to the authorities especially the Corporate Affairs Commission. This means proper identification and codification of business will enable proper categorization of businesses.

This will also help in identifying and providing the needed services for these businesses and the citizens. It will also make it easier for the owners to access government loans and support. But it will also help in business premises tax, tenement rates assessment and ground rent taxes, this will help in proper buildings codification.

It is clearly obvious that jobs, their creation and their sustenance is needed for a stable, progressive livelihood and society. Therefore it should be the most important task that any government should embark on creating.

Presumably, governments may not be major job creators but they should create the enabling environment for enterprise to flourish as private entreprises have similar capacity to employ. Equally too the databases from the codification exercise will guide the government on the policies to formulate and implement to properly guide societal development in education, commerce, industry and agriculture.