IMPACT OF TAX REVENUES ON ECONOMIC GROWTH IN NIGERIA: A TIME SERIES ANALYSIS

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Vol 3, 2015.pdf (243.12 KB)

Date

2015-03-03

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Department Of Accounting, Faculty Of Administration, Nasarawa State University, Keffi.

Abstract

This study examines the impact of tax revenue on the growth of Nigeria. The study covers the period of 20year, 1994 to 20/4. I he data were collected from the annual financial report of the Central Bank of Nigeria and the Federal Inland Revenue Services (FIRS). The data were analysed using descriptive statistic and regression analysis. The result of the analysis indicates that there is a significant positive relationship between tax revenue and economic growth. 7 he extent of the relationship is up to 79%. Again, Company Income Tax (CIT), Petroleum Profit Tax (PPT) and Value Added Tax all have significant impact on gross domestic product. It is recommended that government should diversify, carry out reforms and strengthen its sources of Tax revenue. This can be done by providing enabling business environment e.g. provision of business infrastructures like electricity, good road and security. This will encourage more companies to come up and the existing companies will generate rnore profit thereby increasing tax revenue which will lead to more economic growth.

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Keywords

Tax Revenue, Petroleum Profit Tax, Value Added 'Fax, Company Income Tax

Citation

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https://keffi.nsuk.edu.ng/handle/20.500.14448/732

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