I read something in the news today. Nigeria’s Lagos government wants to tax music sold in Lagos. So that they can reinvest some of that into the industry.
Two things:
1. It’s absurd to claim you want to tax an industry so you reinvest in it
2. Lagos seems to be creating multiple taxes. Taxes that would probably affect the middle class most. Like the ride-hailing tax they recently announced.
These taxes are interesting because they’ll definitely lead to more voter consciousness of how the government spends their money.
It also shows government funding is deeply constrained. Which is sort of good. If state governments no longer get free money. They’ll think harder, work harder and become more answerable to tax payers.
Finally, if the State wants to tax an industry to invest in it, it shouldn’t try to invest directly. It should focus on the public services that influence that industry. So, building specialised arts and music schools, building creative centers are more reasonable than trying to tax entertainers to create an entertainment investment fund.
I still the idea and the way it’s been promoted are absurd. Nigeria has a weird way of turning rationality on its head.
Here’s a link:
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Kind regards,
Babatope Aiku.