Evaluation of the Effect of Personal Income Tax (Amendment) Act, 2011 on Employees Pay-As-You-Earn (PAYE) in Plateau State

This study evaluates the effect of Personal Income Tax (Amendment) Act (PITA), 2011 on employees Pay-As-You-Eam (PAYE) with the view to ascertaining whether employees are favored or not and the extend at which the administration of PITA 2011 satisfies the purpose to which it was amended. Panel data for the period 2009 to 2014 of some selected PAYE paying organisations were used. The study analyses the panel data analysis using Panel Fully Modified Ordinary Least Square (FMOLS). The study finds that Personal Income Tax (Amendment) Act; 2011 have positive effect on employees' Pay-As-You-Eam (PAYE), in that they pay lesser tax/PAYE than before the Act. The implication of this is that PITA 2011 results in leaving more disposable income in the hands of employees, hence improving standard of living, savings and investment. Tlie study recommends that more incentives should be given to taxpayers that file tax returns voluntarily to encourage low and medium taxpayers to save and invest in order to generate more taxable income to boost government revenue.