Abstract
The purpose of this study was to propose an alternative approach to the administration of personal income tax in Nigeria. This country presently relies heavily on income from its oil industry which constitutes about 80 per cent of the total revenue generated. A well structured personal income tax administration and management system will broaden the tax base, enhance distributional equity, allocational neutrality and administrative simplification. The study was a descriptive study that utilized the Delphi Technique to sample the opinion of experts and reach consensus. About thirty professionals from various institutions were sampled, and their responses to a two-tier questionnaire survey were the basis for the analysis in the study. The experts agreed that a developing economy like Nigeria should have a centralized personal income tax administration machinery that is controlled by the central government. This will make it feasible for the central government to utilize personal income tax as a tool of fiscal policy. The states on the other hand, should develop the sales tax and property tax to provide more revenue for the various states' infrastructural programs. To achieve such tax renovation, citizens should be well informed about the importance of taxation and its contribution to the socio-economic growth of the nation. That way, socio-political resistance will be minimized. The finding of the study was that an effective and efficient personal income tax administration in Nigeria will be accomplished if the personal income tax administration is centralized under federal supervision. The study also found that direct taxation will generate more revenue to the government coffers than any other form of tax.