Impact of taxation on economic development in nigeria pdf

This work evaluates the effect of tax avoidance and tax evasion on economic growth and development in nigeria 20062016. There are numerous researches which have been done on tax and economic growth in developed and developing countries. Tax revenue generation and nigerian economic development. Several arguments have trailed the relevance of taxation resources as a tool for enhancing infrastructural development in nigeria, some scholars submit that the quantum of tax resources. Percentage shares of oil and nonoil federal government revenue. Impact of etaxation on nigerias revenue and economic growth. Even after some tax policies the tax authority has put in place over the few years such as the e payment scheme, tax identification number. Download free recent taxation project topics and materials with already available chapters 1 to 5 in nigeria. This study examined the impact of etaxation on nigerias revenue and economic growth. Journal of accounting and taxation full length research paper evaluating the impact of value added tax on the economic growth of nigeria nasiru mukhtar gatawa1, haruna mohammed aliero1 and abdullahi muhammad aishatu2 1department of economics, usmanu danfodiyo university, sokoto, nigeria. Given that the purpose of introducing electronic tax system is to improve revenue collection which will in turn improve the countrys economic growth, the study empirically examined how the implementation of etaxation in 2015 has affected tax revenue, federally collected revenue and taxtogdp ratio. The target population for this study consisted of the quarterly reports on the state of the kenyan economy in relation to productivity.

This study examines the impact of taxation on investment and economic growth in nigeria from 19802010. The impact of taxation as an aid to economic development includes abstract and chapter one, complete project material available the impact of taxation as an aid to economic development in edo statea case study of oredo local government area, edo state, nigeria proposalthe research work will discuss in detail the impact of taxation as an aid to economic development in edo state. A study on the effect of tax revenue on economic growth and development in nigeria is justified based on the need for the various level of government in nigeria to ensure continuous economic growth and development through the utilization of tax revenue from various taxes ranging from petroleum profit tax, company income tax, custom and excise. Simple percentages, bar chart, pie chart, and chisquare x2 oe2 e. Department of accounting and finance faculty of management sciences, lagos state university, lagos, nigeria eaddress. An assessment of the contribution of tax on nigerias. Basebroadening measures can eliminate the effect of tax rate cuts.

Taxation papers are intended to increase awareness of the work being done by the staff and to seek comments and suggestions for further analyses. The impact of tax accounting on economic development of nigeria. The effect of taxation on the economic development of edo state and nigeria in general cannot be ignored because taxation reduces the purchasing power of the tax payer, it also lead to monopoly, finally it narrows the choice of goods in the economy. In 83% of the surveyed countries, effect on tax revenue in nigeria. Number and branches of banks in nigeria, 19801992 14 2. It aimed to give a detailed examination of the effect of tax avoidance on the economic growth and development in nigeria. The ordinary least square method of multiple regression analysis was used to analyze the data. However, one means of generating the amount of revenue for providing the needed infrastructure is through a well structured.

Relevance of tax revenue resources to infrastructural development of nigeria international journal of managerial studies and research ijmsr page 75 development in nigeria. The study analyzed gdp, cit, pit and investment level in nigeria using the. Ordinary least square technique was employed to test the hypotheses formulated. C, the payment of vat has improved the prospects of businesses, organizations and industries in nigeria and the study strongly recommends that. The impact of taxation on economic growth in south africa munich. Revenue generated from tax has a positive impact on the economic development of the nation. A study of federal capital territory and selected states 23 research centre for management and social studies selected states in nigeria and to identify the use of taxation to promote economic growth and development in fct and in some selected states in nigeria. This act regulates the personal income tax throughout the federation. On the whole, the ultimate goal of tax reform is the enhancement of public revenue generation. The economic effects of taxation according to ayodele, 2004 include. Taxation can have an impact on many aspects of the economy, including. The taxation revenue on nigeria economic growth comes to lime light considering the incidence of overdependent on oil revenue in nigeria.

Economic development is the development of economic wealth of countries or regions for the wellbeing of their inhabitants. Introduction the purpose of this study is to investigate the role and impact of tax on economic development in asia. From a policy perspective, economic development can be defined vices as efforts that seek to improve the economic well. To examine the relationship between value added tax and revenue generation in nigeria to establish the effects of value added tax on revenue generation in nigeria 1.

Based on the analysis results it is evident that in effort to stimulate economic growth in oecd countries. A similar negative relationship between the tax burden and the economic growth rate in nigeria and south africa was reported by saibu 2015. The impact of taxation on investment and economic development in nigeria edame, greg ekpung,ph. The impact of property taxes was statistically insignificant. Taxation and economic growth in a resourcerich country. Descriptive analysis and regression analysis will be adopted to analyze the data. Ojong, anthony and arikpo 2016 undertook the study of investigating the impact of tax revenue on economic growth in nigeria over the period. Tax revenue generation and nigerian economic development okafor, regina g. Ofurum et al impact of etaxation on nigeria s revenue and economic growth.

The role of taxation in promoting economic growth in nigeria is not fully felt, and optimal tax is not been realized that can engine economic growth primarily because of its poor administration. They conclude that economic growth is the most jeopardized by corporate tax, income tax, and consumption taxes. We also expand the scope of the study to capture the effects of the most recent reforms and policy instruments relating to taxation in the nigerian economy such as. The objective of this study was to examine the significant difference between the effects of oil and non oil tax revenue on economic growth in nigeria. The main objective of the study is to investigate the impact of taxation revenue on nigeria economic growth. In this chapter, we examine the relationship between taxation and economic growth in a resource rich country, using nigeria as a case study. Which of the effects of taxation is the most significant. The impact of taxation on investment and economic development. The empirical results confirm that there is a negative relationship between taxes and economic growth in south africa.

The annual data were sourced from the central bank of nigeria statistical bulletin and nbs. According to oyesiku 2002, urbanization in nigeria has a long history in its growth and development. Government imposes levies on individuals, companies, organisations in the form of tax so government machinery. Similar conclusions for corporate taxation provide lee and gordon 2005. Taxation papers are written by the staff of the european commission s directorategeneral for taxation and customs union, or by experts working in association with them. This study was designed to investigate the tax revenue and nigerian economic growth for period of three decade, using time series data from 1986 to 2015. The research design adopted in this study was causal study.

There is no doubt that taxation must have affected the economic development of nigeria. The population of this study includes 51 respondents drawn from taxpayers, management and. The net impact on growth is uncertain, but many estimates suggest it is either small or negative. Taxation, besides its revenue generation capacity, can also be used as a fiscal policy tool to shape the economy. Thus, taxation is by far one the most significant source of revenue for the. Extensive development being a feature of the 19th and 20th centuries, with concentration of economic and administrative decisionmaking in lagos, ibadan, kaduna, jos, and enugu, and high degree of specialization and larger. The impact of taxation on revenue generation in nigeria. Ordinary least square ols estimation technique is employed in estimating the. The work therefore intends to examine whether cross sectional economic growth is enough a viable tax policy in nigeria. For the purpose of this study, the researchers would be concerned with the impact of taxation on nigeria economy.

Ho1 tax revenue has no significant positive impact on economic development of nigeria using hdi. Taxation has no significant impact on gdp, inflation and. An effective tax system has been put in place so the government wont feel the impact of having god given natural resources. The implementation of etaxation has significant tax compliance process electronically. List of taxation project topics, research materials, guidelinesideas and works for final year undergraduate students in nigerian universities polytechnics. The impact of taxation as an aid to economic development includes abstract and chapter one, complete project material available the impact of taxation as an aid to economic development in edo statea case study of oredo local government area, edo state, nigeria proposalthe research work will discuss in detail the impact of taxation as an aid to economic development. The impact of tax revenue on nigerian economy case of federal board of inland revenue matthew a. However, there are several studies of this topic which have. Several studies pertaining to tax reforms in nigeria have tied tax reform on economic growth undermining public generated revenue. This study examined the impact of e taxation on nigeria s revenue and economic growth. For taxation to make the desired impact on the economic development of nigeria as the major source of government revenue. Evaluating the impact of value added tax on the economic. There are numerous researches which have been done on tax and economic growth in.

Effect of taxation on the economic development project topics. Obviously, the first need of any modern government is to generate enough revenue which is indeed the breath of its nostril. Effects of income tax changes on economic growth brookings. Factors that affect tax comp liance among small and. The objective of this study is to investigate the impact of taxation on economic development of nigeria proxy by the gross domestic product gdp.

Given that the purpose of introducing electronic tax system is to improve revenue collection which will in turn improve the countrys economic growth, the. We explore the linkages between availability of higher resource revenue and lower taxation effort of other revenue categories and the effects of these on growth. Data were obtained from the central bank of nigeria, office of the federal inland revenue service and annual abstract of statistics of the national bureau of statistics. For the purpose of this study, the researcher would be concerned with the impact of taxation as an aid to the economic development of anambra state nigeria. Problems of economic development in nigeria and solutions. Tax is an important stream of revenue for governments development projects. The study focuses on the impact of petroleum profit tax, company income tax, personal income tax, value added tax revenue on nigerias economic growth between 1980 and 20. The study period spans economic cycles for about 66 percent of the life of.

The study focuses on the impact of petroleum profit tax, company income tax, personal income tax, value added tax revenue on nigeria s economic growth between 1980 and 20. Taxation of corporations and their impact on economic growth. A,vat has economic impact in consumption pattern in nigeria b, vat has positive impact on the economy of nigeria. Statement of the problem nigeria is said to be deficient in human capital and infrastructure and as a developing economy, one of the defining features of its growth would be underpinned by the improvement of human capital and massive development of physical infrastructure. The studys objective was to determine the effect of value added tax on economic growth in kenya. The aim of this paper is to evaluate the impact of individual types of taxes on the economic growth by utilizing regression analysis on the oecd countries for the period of 20002011. Ofurum et al impact of etaxation on nigerias revenue and economic growth. Impact of etaxation on nigerias revenue and economic. Relevance of tax revenue resources to infrastructural.

Attempts have been made to appraise the impact of corporation tax on investment in nigeria. Number of listed securities in nigeria 19801992 16 3. Pdf impact of etaxation on nigerias revenue and economic. The impact of taxation on nigeria economy growth projectclue. Percentage contributions of direct tax, indirect tax and non tax revenue to the total federal government revenue, 1961 1992 21 5.

The annual data were sourced from the central bank of nigeria. The impact of taxation as an aid to economic development in. Yearly data for south africa for the period 1981 2016 was used to develop the autoregressive distribution lag ardl approach. Some others also argue that the level of economic development have justified the quantum of taxes collected in nigeria. The impact of taxation as an aid to economic development. This paper investigates the impact of taxation on economic growth in south africa.

The first need of any modern government is to generate enough revenue which is indeed the breath of its nostrils. Impact of tax administration on government revenue in a. The impact of tax policy on economic growth in nigeria. Jan 29, 2015 the aim of this paper is to evaluate the impact of individual types of taxes on the economic growth by utilizing regression analysis on the oecd countries for the period of 20002011. Especially taxation of corporations has great importance because a corporate tax. However, one means of generating the amount of revenue for providing the.

The study further looked at the relation between companies income tax cit, petroleum profit tax ppt and gross domestic product in the postifrs period. If taxes on excise duties are high, production costs will be high and this affects production adversely. The impact of taxation as an aid to economic development in edo state a case study of oredo local government area, edo state, nigeria proposal the research work will discuss in detail the impact of taxation as an aid to economic development in edo state. World bank and pwc 2015 3 paying taxes survey in 2005 revealed that taxpayers are able to file tax returns electronically in about 45% of the countries that were surveyed. The impact of taxation on economic growth in south africa. For the purpose of this study, the researcher would be concerned with the impact of taxation on economic development in nigeria. The general objective of this study is to examine the impacts of value added tax on revenue generation in nigeria. Pdf the objective of this study is to investigate the impact of taxation on economic development of nigeria proxy by the gross domestic. Mar 27, 2016 for taxation to make the desired impact on the economic development of nigeria as the major source of government revenue. This research wok, treated impact of taxation as an aid to economic development. Taxation and tax policy as government strategy tools for.

This study examined the impact of tax incentives on economic development in nigeria that is seen in terms of industrial growth in the nation with evidence from years 2004 to 2014. The impact of tax accounting on economic development of. The effect of tax revenue on the economic development of nigeria is not significantly different from its impact on economic growth using gdp as a measure. Impact of taxation revenue on economic growth of nigeria. Taxation and tax policy as government strategy tools for economic development in nigeria oyewo babajide michael 1 1 school of business, department of accounting, covenant university, ogun state, nigeria abstract. Given that the purpose of introducing electronic tax system is to improve revenue collection which will in turn improve the countrys economic growth, the study empirically examined how the implementation of e taxation in 2015 has affected tax revenue, federally collected revenue and tax. Impact of taxation revenue on economic growth of nigeria with references. D department of economics, university of calabar, pmb 1115, calabar, cross river state, nigeria email. Edame and okoi 2014 looked at the impact of taxation on investment and economic development in nigeria from 19802010. There should be functional vat offices in every council. The result shows that vat contributes significantly to the total tax revenue of government and by extension the economic growth of nigeria. The impact of taxation is integrated into growth models by its impact on the individual growth variables, which are capital accumulation and investment, human.