Impact of taxation on economic growth in nigeria pdf

The main objective of the study is to investigate the impact of taxation revenue on nigeria economic growth. The study examined the effect of value added tax vat on economic growth in nigeria in the period 19942016. Descriptive analysis and regression analysis will be adopted to analyze the data. Ekeocha 2010 however, made a simulation study advocating value added tax trade from 5 to 15%. 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 contribution of taxation to any economy globally cannot be overemphasized. The aim of this study was to investigate on company income tax and its effects in the nigeria economy. The impact of tax policy on economic growth in nigeria. The paper examined the impact of tax revenue on economic growth in nigeria from 1980 to 2015.

In 83% of the surveyed countries, effect on tax revenue in nigeria. The study examined the impact of tax revenue on the nigerian economy. Impact of unemployment on nigeria economic growth 19812017 pdf. 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. Impact of tax revenue on economic growth in nigeria.

The study used various statistical methods and concludes that tax. Pdf effect of taxation on economic growth of nigeria 19942014. The impact of taxation on economic growth in nigeria includes abstract and chapter one, complete project material available the impact of taxation on economic growth in nigeria 19862011 abstract the research work will discuss in detail the impact of taxation on economic growth in nigeria. Especially taxation of corporations has great importance because a corporate tax. Several studies pertaining to tax reforms in nigeria have tied tax reform on economic growth undermining public generated revenue. Yakubu and jibril 20 investigated the relative impact of value added tax on economic growth in nigeria. It is not farfetched that taxation has a positive role, and is an engine to the economic growth of 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. Taxation and economic growth in nigeria research and scientific. 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 to economic. The research used ordinary least squares ols and granger causality technique using secondary data sources.

Promoting entrepreneurship is also one of the priorities of the european commission, in line with the objectives of the single market. The impact of taxation on nigeria economy includes abstract and chapter one, complete project material available the impact of taxation on nigeria economy abstract this research work was carried out in order to find out if actually there is any impact which taxation has on nigerian economy and the survey for this study is based on enugu state. Apart from the revenue function it performs for the government, it is also used to assist the national government to achieve the countrys macro economic objectives in the. Impact of unemployment on economic growth of nigeria.

Chapter 2 the impact of taxation on entrepreneurship in the traditional and. Nigeria tax system between 1970 2010 using tax buoyancy and elasticity as indexes. Introduction the purpose of this study is to investigate the role and impact of tax on economic development in asia. The objective of this study is to investigate the impact of taxation on economic development of nigeria proxy by the gross domestic product gdp.

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 study adopted a descriptive and historical research design. Ordinary least square technique was employed to test the hypotheses formulated. The study period spans economic cycles for about 66 percent of the life of. Evaluating the impact of value added tax on the economic. 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. Using three approaches, we consider the impact of a major tax reforma 5 percentage point cut in marginal tax rateson longterm growth rates. The result shows that vat contributes significantly to the total tax revenue of government and by extension the economic growth of nigeria. Impact of etaxation on nigerias revenue and economic. The analyses were performed using data from cbn bulletin, nse fact book and firs annual report for an eleven. Pdf impact of tax reforms and economic growth of nigeria. This study examined the impact of e taxation on nigeria s revenue and economic growth.

Similar finding which indicate that low income tax rates boosted the economic growth was reported by bonu and pedro 2009 who utilized descriptive technique in botswana. The impact of taxation on economic growth in south africa munich. It aimed to give a detailed examination of the effect of tax avoidance on the economic growth and development in nigeria. Taxation of corporations and their impact on economic growth. Effects of multiple taxation on the performance of small. Ogbonna and appah 2012 examined the impact of tax reforms on economic growth in nigeria, using data collected from the statistical bulletin of the central bank of nigeria cbn for the period 1994 2009. The study further looked at the relation between companies income tax cit, petroleum profit tax ppt and gross domestic product in the postifrs period. The impact of taxation on economic growth in south africa. 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. This philosophy is in contrast to the traditional economics views that low income taxes are capable of influencing economic development.

Edame and okoi 2014 exa mined the impact of taxation on investment a nd economic growth in nigeria from 1980 to 2010 using the ordinary least square method of multiple regression analysis to a. Over the years, small and medium scale enterprises smes have been an avenue of job creation and the empowerment of nigerian citizens, providing about 50% of all jobs in nigeria and also for local capital formation. Economic growth is the growth of an economy s output of goods and services which is sometimes reffered to as the gross national product gnp growth. Ojong, anthony and arikpo 2016 undertook the study of investigating the impact of tax revenue on economic growth in nigeria over the period. The results indicate a zero effect of taxation on longterm growth. Taxation of corporations and their impact on economic.

By virtue of its size, improved economic management and strong economic growth in nigeria. Project topic on the impact of taxation on nigeria. Ofurum et al impact of e taxation on nigeria s revenue and economic growth. Pdf the objective of this study is to investigate the impact of taxation on economic development of nigeria proxy by the gross domestic. Pdf company income tax and nigerian economic growth. The study investigated the impact of tax revenue on economic growth in nigeria, annual time series data were obtained from the central bank of nigeria statistical bulletin for the period 1981 to 2015 on the variables used for the study. It will also take cognizance of the aims and objectives of taxation and its impact. The study focused on the impact of tax revenue on nigeria economy. In this study, we empirically test the impact of taxation on the longterm growth of a sample of 32 countries in subsaharan africa. Most studies dwelt on the impact of economic growth, its impact on capital formation, its impact on capital stock, deficit and macroeconomics variables, while studies on manufacturing sector focuses on its productivity and its performance on economic growth. Impact of taxation revenue on economic growth of nigeria.

Based on the analysis results it is evident that in effort to stimulate economic growth in oecd countries, economic politic authorities should lower the corporate taxation and personal income taxes, and the loss of income tax revenues should be compensated by the growth of indirect tax. Unit root test was conducted using augmented dickeyfuller test technique and the result showed that the variables were stationary though at different levels. This work evaluates the effect of tax avoidance and tax evasion on economic growth and development in nigeria 20062016. 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. This study examines the impact of company income tax on economic growth in nigeria. However, one means of generating the amount of revenue for providing the needed infrastructure is through a well.

The impact of taxation on nigeria economy growth, largest undergraduate projects repository, research works and materials. Ho1 tax revenue has no significant positive impact on economic development of nigeria using hdi. The implementation of etaxation has significant tax compliance process electronically. This paper investigates the impact of taxation on economic growth in south africa. Imperial journal of interdisciplinary research ijir vol3, issue4, 2017 issn. The impact of unemployment on economic growth includes. Given that the purpose of introducing electronic tax system is to improve revenue collection which will in turn improve the countrys economic growth, the. The empirical results confirm that there is a negative relationship between taxes and economic growth in south africa. 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. Impact of tax reforms and economic growth of nigeria. The discussion by barro 1990 and raja and rebelo 1990, said that tax will make market distortion and the productive expenditure will give an impact to longterm growth rate. The impact of indirect tax revenue on economic growth.

There are several literatures by different authors, scholars and researchers on taxation as source of government revenue and its impact on nigeria economy. One of the objective carried out by the researcher was to examine peoples perception on taxation. Impact of multiple taxation on africa trade policy notes. Impact of multiple taxation on competitiveness in nigeria nihal pitigala and mombert hoppe march 2011 introduction nigeria is africas most populous country and second largest economy after south africa. The impact of tax revenue on economic growth iosr journal. In this chapter, we examine the relationship between taxation and economic growth in a resource rich country, using nigeria as a case study. In a similar study, jelilov, abdulrahman, and isik 2015 have studied the impact of tax reforms and economic growth in nigeria.

Pdf the impact of tax reforms and economic growth of nigeria. Yearly data for south africa for the period 1981 2016 was used to develop the autoregressive distribution lag ardl approach. Against this back drop, this paper is designed to examine the influence of tax reforms, beginning with the introduction of valueadded tax vat. Taxation and economic growth in a resourcerich country.