Agreement establishing the african continental free trade area. The impact of tax revenue on nigerian economy case of federal board of inland revenue matthew a. 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. In nigeria oil revenue seems to be the major source of revenue basically because others sources are. Economic development in nigeria oyewo babajide michael 1 1 school of business, department of accounting, covenant university, ogun state,nigeria abstract. Taxation and tax policy as government strategy tools for. Nigeria as a nation has the vision of becoming one among the worlds 20 largest economies in the year 2020. However, one means of generating the amount of revenue for providing the needed infrastructure is through a well.
A lot of literature exists on tax revenue and economic growth of nigeria adereti et al. 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. The paper empirically examined the contribution of vat to the development of the nigerian economy. Kaldor 2004 pointed out the importance of government revenue in accelerating economic development. The inability of states and local governments in nigeria to generate enough revenue to cope with their expenditure responsibilities has been a serious challenge. According to adeoye 2006, the debate on the effectiveness of fiscal policy as a. This is approved for students in accountancy business computer science economics engineering arts. Revenue allocation formula and its impact on economic. An emperical analysis of tax revenue and economic growth in nigeria from 1980 to 2015.
The nigerian experienceproject topics and materials in nigeria. To investigate the relationship between the changes of vat revenue on the economic growth of nigeria 3. Evaluate the effect of tax revenue on infant mortality im in nigeria. 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. The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. In 2016 during its first recession in 25 years, the economy contracted by 1. Value added tax and economic development in nigeria. This is important when it is realized that any action taken on vat, as it relates to rgdp will take a year to become effective while taking two years to slow down the economy. Ofurum et al impact of etaxation on nigerias revenue and economic growth. Vat at present contributes higher to total government revenue in nigeria as it provides the government with expected revenue to embark on developmental project to fasten economic development in the country.
Get free research paper on evaluation of internally generated revenue and economic growth of kano state from 19992014 project topics and materials in nigeria. This research work examines the link between taxation and economic development in nigeria for the period 1994 to 2012. Oil accounts for about 9095% of the export revenue, over 90% of foreign exchange earnings and about 80% of government revenue. 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 is a compulsory levy imposed by government on individuals. The impact of taxation on revenue generation in nigeria. Whatever the prevailing ideology or political situation of a particular country, it must steadily expand a host of nonrevenue yielding services such as education, health, infrastructure, and social security. The federal government of nigeria through its treasury circular ref. The impact of tax reform on federal revenue generation in nigeria dickson. The result indicated a unidirectional causality between tax revenue and economic growth and it flows from tax revenue to economic. The study period spans economic cycles for about 66 percent of the life of. Harelimana, 2018 there is a temporary impact on the tax policy exogenous model growth. Tax compliance here is proxied in willingness of the citizens to pay tax.
The nigerian perspective is because the bulk of revenue needed for development purposes is derived from oil. Okafor 2012 explores the impact of income tax revenue on the economic growth of nigeria as. Objectives of taxation the main purpose of tax is to raise revenue to meet government expenditure and to redistribute wealth and management of the economy ola, 2001. Under the creative commons attribution license, you are free to copy, distribute. The impact of value added tax on revenue generation in nigeria. Tax revenue is essential to accelerate the economic development basirat et al. Taxation, besides its revenue generation capacity, can also be used as a fiscal policy tool to shape the economy. The study is aimed at the appraisal of revenue generation in nigeria. The broad objective of this study is to ascertain the effect of tax revenue on economic development in nigeria. Uniprojects aim of providing impact of value added tax on nigerian economic growth project research material is to reduce the stress of moving from one school library to another all in the name of searching for impact. Fiscal federalism, governance and internally generated. Please, sit back and study the below research material carefully. At this stage, however, there is little agreement about federal reserve board, washington.
List of taxation project topics, research materials, guidelinesideas and works for final year undergraduate students in nigerian universities polytechnics. Pdf tax revenue and economic development in nigeria. Fiscal federalism, governance and internally generated revenue. The impact of internally generated revenue on economic. 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. To observe the growth pattern of vat revenue and gdp 2. The general objective of the study is to investigate the impact of vat on the economic growth of nigeria. A is so much in terms of quantification and cannot be therefore penalize any company that have registered but evades tax. 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. The importance, how to, effect causes relationship, comparison, history, role, solutions are discussed. For taxation to make the desired impact on the economic development of nigeria as the major source of government revenue. Examining weak subnational finances in nigerian states chukwuma agu african institute for applied economics,enugu, nigeria abstract one of the most crucial challenges to nigerias ailing fiscal federalism is the inability of states to raise, retain and manage revenue. Identify the effect of tax revenue on labour force lf in nigeria.
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. Effects of income tax changes on economic growth brookings. World economic situation and prospects 2020 the united nations. Gdp growth over the past five years has been unimpressive for such a resource rich developing country.
Every country struggles or tries to exhibits sustainable economic growth and development. On average, a one per cent increase in per capita income reduced. Sustainable development involves all aspects of mans social, economic, political and institutional framework that keep the society going todara and smith, 2004. Crude oil export has continued to account for over 80% of the total federal government revenue, while the remaining 20% is contributed by nonoil. Oil price volatility continues to influence nigerias growth performance. The study revealed that companies income tax, petroleum profit and value added tax have a long run impact of 0.
Economic development in nigeria oyewo babajide michael 1 1 school of business, department of accounting, covenant university, ogun state, nigeria abstract. The general objective of this study is to examine the impacts of value added tax on revenue generation in nigeria. The improper use of igr and corruption have remained a setback to. This research work studied the impact of value added tax on revenue generation in nigeria. The oil industry is thus the hub of the nigerian economy, and needs to be sustained if the country is to achieve real economic growth. The effect of tax compliance on economic growth and.
The roles of value added tax in the economic growth of. Some others also argue that the level of economic development have justified the quantum of taxes collected in nigeria. Development strategy for nigeria moses akpobasah at a 2day nigeria meeting organized by the overseas development institute, london, 1617 june 2004 contact. 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.
Some researchers estimated the effect of tax revenue on the economic development of nigeria using gross domestic product gdp. Secondary data were used in this study, the data were collected from cbn statistical bulletin also gathered from journals and textbook that is related to the research topic, the study. This study was designed to inv estigate the tax revenue and nigerian economic growth for period of three decade, using time series data from 1986 to 2015. The study found that there exist both short run and long run relationship between economic growth and tax revenue. Fiscalmonetary policy and economic growth in nigeria. Effect of value added tax, customs and excise duties on. Broadly, states in nigeria get barely oneeighth of the revenue they utilize for running the affairs of government from within. The incidence of tax in nigeria is borne directly or indirectly.
Internally generated revenue of nigerian states trends. Impact of value added tax on nigerian economic growth project material. 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. World development report 2019 world bank documents. This act regulates the personal income tax throughout the federation. World economic situation and prospects 2019 the united nations. The study adopted a descriptive and historical research design. In these studies, researchers used economic development and economic growth interchangeably. The most commonly used ones in nigeria are the proportional tax system and the progressive tax system. The study investigated the impact of internally generated revenue igr on economic development of nigeria.
Download free recent taxation project topics and materials with already available chapters 1 to 5 in nigeria. It investigates how the value added tax introduced in the country in may 1993 and other types of. Relevance of tax revenue resources to infrastructural development of nigeria international journal of managerial studies and research ijmsr page 75 development in nigeria. Hence, the problem of poor internal generated revenue in most local government in nigeria. The impact of company income tax revenue on the developing. This paper examines how changes to the individual income tax affect longterm economic growth. An emperical analysis of tax revenue and economic growth.
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. Department of accounting and finance faculty of management sciences, lagos state university, lagos, nigeria eaddress. Download limit exceeded you have exceeded your daily download allowance. Relevance of tax revenue resources to infrastructural. Impact of value added tax on nigerian economic growth. The decline in industrial employment in many highincome economies over the last two.