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Taxation and Nigerian Economy: an Empirical Analysis

Cletus Okey Amah
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Cletus Okey Amah: Department of Accounting, Faculty of Business Studies, Ignatius Ajuru University of Education, Rumuolumeni, Port Harcourt, Nigeria

International Journal of Management Science and Business Administration, 2021, vol. 7, issue 4, 29-35

Abstract: The study was carried out to investigate the effect of Nigerian taxation system on Nigerian economy. The study anchored on benefit received theory of taxation as it theoretical framework. The study covered a period of 18 years (1999-2017). Time series data extracted from Central Bank of Nigeria Statistical Bulletin and Federal Inland Revenue Service for the various years was used for the study. Ordinary Least Square method of regression was adopted for data analysis. The independent variables are Value Added Tax (VAT), Petroleum Profit Tax (PPT), and Company Income Tax (CIT) while Gross Domestic Product (GDP) is the dependent variable. The regression result revealed that there is a significant positive relationship between the independent variables (PPT, CIT) and Gross Domestic Product. However the relationship between Value Added Tax and Gross Domestic Product is negative. It is recommended that government should provide enabling environment for companies to generate more revenues. Government should also reduce the VAT rate to encourage consumption of certain goods.

Keywords: Value added tax; Gross domestic product; Petroleum profit tax; Company income tax. (search for similar items in EconPapers)
JEL-codes: M00 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.18775/ijmsba.1849-5664-5419.2014.74.1004

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