Diversification of nigerians economy through tax revenue. Data presentation and analysis, presentation of result, interpretation of result and evaluation of research hypothesis. The impact of tax accounting on economic development of. The roles of value added tax in the economic growth of. Tax and company income tax revenues by at least n315bn every year as well as improving revenue from taxes from the current 6% of gdp which is very low by both ecowas and international standards, to 15% by 2020. The analysis of the effect of petroleum profit tax on. The taxation revenue on nigeria economic growth comes to lime light considering the incidence of overdependent on oil revenue in nigeria. In nigeria, the tax reform is spear headed by the federal inland revenue service in its quest to achieve greater revenue collection, encourage voluntary and willing compliance and breaking the long piercing phobia between taxpayers and tax collectors. Tax revenue is frequently considered as an alternative form of sustainable financing within a stable and predictable fiscal environment. Together these measures were intended to increase government revenue at a rate of 12. Ofurum et al impact of etaxation on nigerias revenue and economic growth.
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 study empirically examined how the implementation of etaxation in 2015 has affected tax revenue, federally collected revenue and taxtogdp ratio. The data for the analysis were collected from cbn statistical bulletin and federal inland revenue services. Crude oil export has continued to account for over 80% of the total federal government revenue, while the remaining 20% is contributed by nonoil. University of technology, ogbomoso, oyo state, nigeria abstract the study empirically examines the effect of petroleum profit tax ppt on nigeria economy, in line with the objectives of this study, secondary data were obtained from central bank of nigeria statistical bulletin. Evaluate the effect of tax revenue on infant mortality im in nigeria. Others have questioned whether tax reform would have such beneficial effects on economic growth. Download free recent taxation project topics and materials with already available chapters 1 to 5 in nigeria. 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. This is approved for students in accountancy, business, computer science, economics, engineering, arts. An emperical analysis of tax revenue and economic growth in. From the broad objective above, the specific objectives of this study are as follows.
The analysis of the study was carried out using the method of multiple regression analysis. Irrespective of how a country chooses to share the tax burden among tax payers or allocates tax revenues among various. Econometric analysis of the impact of value added tax on. In conclusion, governments all over the world need revenue to run the affairs of their states. 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.
Impact of taxation revenue on economic growth of nigeria. 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. An emperical analysis of tax revenue and economic growth. Petroleum profit tax revenue from petroleum profit tax is the most significant source of revenue of the nigeria government, accounting for over 90% of its total foreign exchange earnings. This study examines the effect of tax revenue on economic growth in nigeria, utilizing time series data for the period spanning from 1970 to 2011. The study focused on the impact of tax revenue on nigeria economy. Data and research on income taxes including oecd tax databases, taxing wages, revenue statistics, tax policy studies. This economic reasoning emphasized the revenue need of government and indicates that, apart from. The impact of tax accounting on economic development of nigeria. Pdf tax revenue and economic growth of nigeria researchgate.
This page provides nigeria government revenues actual values, historical data, forecast, chart, statistics. Adereti, sanni, and adesina 2011, in analyzing value added tax and economic growth of nigeria, used time series data on the gross domestic product gdp, vat revenue, total tax revenue and total federal government revenue from 1994 to 2008 sourced from. This study examined the impact of companies income tax, valueadded tax on economic growth proxy by gross domestic product in nigeria. The nigerian perspective is because the bulk of revenue needed for development purposes is derived from oil. Identify the effect of tax revenue on labour force lf in nigeria. This paper starts by defining economic development. Regression analysis was used to ascertain the relationships between the variable. 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. Taxation and economic growth in a resourcerich country. Relevance of tax revenue resources to infrastructural development of nigeria international journal of managerial studies and research ijmsr page 75 development in nigeria. Effect of tax evasion on economic development of yobe. Many of them have covered all its ramifications while some have effectively appraised the problem of tax administration in. The nigerian experienceproject topics and materials in nigeria.
The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. More over in nigeria the revenue from vat is routinely shared out according to agreed. The impact of government revenue and expenditure on the economic development of cross river state, nigeria, international journal of management sciences, research academy of social sciences, vol. Effect of value added tax on the nigerian economy oraka, azubike o. Even so, the regions tax ratios are still among the lowest in the world, below that of organization for economic cooperation and development.
The study examined the effect of tax compliance on economic growth and development in nigeria. From the findings, this study concludes that revenue allocations to federal government, states, and local governments have a causal relationship with economic development in nigeria with only revenue allocation to states having a negative significant relationship. The regressive tax system is not commonly used,even in developed countries since this will mean revenue from taxes to the government will only continue to reduce. The result indicated a unidirectional causality between tax revenue and economic growth and it flows from tax revenue to economic. Though, both have a positive and significant relationship but the results obtained using gdp. The paper examined the impact of value added tax on revenue generation in nigeria. The study found that there exist both short run and long run relationship between economic growth and tax revenue. This fund is however not sufficient due to tax evasion by some companies and individuals. Total tax revenue as a percentage of gdp indicates the share of a countrys output that is collected by the. The study finds a linear relationship between economic growth and tax revenue. However, one means of generating the amount of revenue for providing the needed infrastructure is through a well. The effect of tax compliance on economic growth and.
With all these explanations and analysis the null hypothesis is rejected and the alternate hypothesis which states that federally tax revenue generation has a positive impact on the economic development of nigeria is accepted. This work examined the nature of tax system, benefits of tax revenue and mechanism that can be adopted to properly harness the revenue from taxation in nigeria. This has afforded the researcher the opportunity to determine the effect of this tax. Income taxes, gdp, tax evasion and avoidance, loopholes in tax laws and administration, revenue generation. Pdf the dwindling price of crude oil has lowered the revenue generation to government thereby, impacting. The impact of government revenue and expenditure on the. Impact of etaxation on nigerias revenue and economic.
Nigeria government revenues 20102019 data 20202022. Impact of value added tax on nigerian economic growth. Yearly time series data of personal income tax and the gross domestic product gdp were obtained from the federal inland. Thus the main objective of this study is to explore the relationship between tax revenue and economic growth and development in nigeria. Relevance of tax revenue resources to infrastructural.
The incidence of tax in nigeria is borne directly or indirectly. Tax revenue generation and nigerian economic development. Chapter four of this impact of value added tax on nigerian economic growth project work is available, order and download full work chapter four of impact of value added tax on nigerian economic growth contains. The objective of this study was to examine the significant difference between the effects of. Company income tax and nigeria economic development. The 2015 budget was the first to be driven by nonoil revenue. Taxation, besides its revenue generation capacity, can also be used as a fiscal policy tool to shape the economy.
Tax compliance here is proxied in willingness of the citizens to pay tax. Revenue allocation and economic development in nigeria. One of the recurrent problems of the threetier structure of the government in nigeria is dwindling revenue. Pdf this study is on government tax revenue and economic development in nigeria. The impact of tax revenue on nigerian economy case of federal board of inland revenue matthew a. The impact of tax reform on federal revenue generation in nigeria dickson. Vat as a tax has contributed immensely on the economic growth of nigeria.
Pdf effect of tax revenue on economic development of. Pdf government tax revenue and economic development in. The impact of tax revenue on economic growth iosr journal. List of taxation project topics, research materials, guidelinesideas and works for final year undergraduate students in nigerian universities polytechnics. This is because tax revenue is an important instrument for economic growth and development in many developing economies like nigeria, since the internal revenue generated. The contribution of taxation to any economy globally cannot be overemphasized. This study examines the effect of tax revenue on economic growth in ghana using quarterly data for the period 1986 to 2010 within the var framework. Time series data on the gross domestic product gdp, vat revenue, total tax revenue and total federal government revenue from 1994 to 2010 sourced from central bank of nigeria cbn were analyzed, using both simple regression analysis and. The study examines the effect of the businesses in nigeria on the economic development of the country. Pdf tax revenue and economic development in nigeria. The specific objective of this paper was to explore the effect of income tax revenue on the economic. Product gdp as the dependent variable and petroleum. The effects of tax revenue on economic growth in nigeria.
Get free research paper on impact of company income tax revenue on the developing economy. Economic development implies improvements in a variety of indicators such as. The limitations encountered in the course of this study include the following. Personal income tax pit and economic growth in nigeria. This paper examines the nigeria tax system and economic growth using a time series data. Therefore, the first objective of this study was to evaluate the effect of tax revenue on the economic development of nigeria using human development index hdi with the intention of shifting dependence on oil revenue to tax income for economic development of nigeria. Taxation and tax policy as government strategy tools for.
The study concerns about taxation as a tool for economic development of nigeria with a particular focus in federal inland revenue service, uyo. The broad objective of this study is to ascertain the effect of tax revenue on economic development in nigeria. The paper seeks to examine alternative measures to over reliance on oil revenue in nigeria and proffered suggestions that could be used as a blue print for diversifying the nigerian economy. Tax revenue, gross domestic product, economic growth, economic. The study period spans economic cycles for about 66 percent of the life of. Tax revenue is defined as the revenues collected from taxes on income and profits, social security contributions, taxes levied on goods and services, payroll taxes, taxes on the ownership and transfer of property, and other taxes. The most commonly used ones in nigeria are the proportional tax system and the progressive tax system. Some others also argue that the level of economic development have justified the quantum of taxes collected in nigeria. Ahuru department of economics and statisticsfaculty of social sciences, university of benin, benin city abstract the main objective of this paper is to ascertain the impact of tax reforms on tax revenue generation in nigeria. This study examined the impact of etaxation on nigerias revenue and economic growth. 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 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. For this reason, the entire ownership and control of petroleum wherever it is.
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