EFFECT OF CORPORATE TAXES ON ECONOMIC GROWTH OF AFRICAN COUNTRIES

Oswald. O. Onyeukwu (), Okoro C. Churchill and Nwachukwu, Michael I
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Oswald. O. Onyeukwu: Department of Accounting, College of Management Sciences,, Postal: Michael Okpara University of Agriculture, Abia, Nigeria, https://www.afarng.org/mjms/
Okoro C. Churchill: Department of Accounting, College of Management Sciences, Postal: Michael Okpara University of Agriculture, Abia, Nigeria,, https://www.afarng.org/mjms/
Nwachukwu, Michael I: Department of Accounting, College of Management Sciences,, Postal: Gregory University, Abia, Nigeria, https://www.afarng.org/mjms/

Multidisciplinary Journal of Management Sciences, 2020, vol. 2, issue 2, 111-130

Abstract: The study examined the effect of corporate taxes on economic growth of African countries. The specific objectives of the study are; to ascertain the effect of company income tax on the Gross Domestic Product of selected African countries and to examine the effect of custom and excise duties on the Gross Domestic Product of selected African countries. To achieve the objectives of the study expost facto research design was adopted. Secondary data, which were generated from Central Bank of Nigeria statistical bulletin and Federal Inland Revenue services bulletin of the selected countries. Data collected were analyzed using panel data regression analysis. The finding revealed that corporate taxes (CIT and CED) have a positive but insignificant effect on economic growth of the selected African Countries. The study recommends that the regulatory authorities charged with the sole responsibility of collecting tax should further be strengthened to enforce compliance by taxpayers. Also, tax revenues should be properly distributed so that economic growth can be harnessed, especially in providing basic social amenities as well as infrastructures in Nigeria. The study further recommends that government should come up with policy that can help to reduce tax evasion among corporate firms and ensure that companies pay all their tax as at when due. This will help in increasing the growth of the economy of African countries.

Keywords: African; Data; Economy; Gross Domestic Product and Tax (search for similar items in EconPapers)
Date: 2020
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