IMPACT OF TAX REVENUE ON INFRASTRUCTURAL DEVELOPMENT IN NASARAWA STATE, NIGERIA: 1988-2018

The objective of the study was to assess the impact of tax revenue on infrastructural development in Nasarawa State. The researcher adopted ex-post-facto research design. The study utilized secondary data on Pay-As-You-Earn (PAYE), Direct Assessment Tax (DAT) and Withholding Tax (WHT) proxy for tax revenues resources as independent variables while expenditure on capital projects proxy for infrastructural development as dependent variable. Theoretically and empirically it has been found that tax revenue influenced infrastructural development in Nasarawa state. The study applied Multiple Linear Regression Technique and Ordinary Least Square to estimate the model The result reveals that tax revenue resources (PA YE, DA T & WHT) had positive and insignificant impact on infrastructural development in the state. The study concludes that tax revenue had great influence on infrastructural development in Nasarawa state. Based on the findings of this study, the researcher recommends that Nasarawa state government should show some degree of accountability and honesty on the revenue collected to make citizen understand the connection between tax revenue and infrastructural development. This can be achieved when tax laws, regulations, procedures and administrative guidelines are made public.