COMPANY INCOME TAX, VALUE ADDED TAX, PERSONAL INCOME TAX AND ECONOMIC GROWTH IN NIGERIA

Joseph Femi Adebisi, Mahmoud Ibrahim and Nuruddeen Abba Abdullahi
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Joseph Femi Adebisi: Department of Accounting, Postal: Faculty of Management Sciences,, Kogi State University, Anyigba, https://journal.citn.org/
Mahmoud Ibrahim: Department of Accounting, Postal: Faculty of Social and Management Sciences,, Bauchi State University, Gadau, https://journal.citn.org/
Nuruddeen Abba Abdullahi: Dangote Business School, Postal: Bayero University, Kano, https://journal.citn.org/

Journal of Taxation and Economic Development, 2020, vol. 19, issue 1, 1-14

Abstract: This study examines the nexus of taxation mechanisms and economic growth in Nigeria by using annual time series data for over 30 years, from 1989 to 2019. Companies Income Tax (CIT), Value Added Tax (VAT) and Personal Income Tax (PIT) are the independent variables while Economic Growth (GDP) was the dependent variable. The study utilized regression technique as a tool of analysis. Results show that Companies Income Tax, Value Added Tax and Personal Income Tax are significantly and positively affect the economic growth in Nigeria. It was concluded that the results validated the theory that taxation is an instrument of economic growth in Nigeria. is the study recommends that Nigeria should lower the tax rate in the case of corporate taxation, personal income taxes and social security contributions. More so, tax authorities should further be strengthened to enforce compliance by taxpayers.

Keywords: Companies Income Tax (CIT); Value Added Tax (VAT); Personal Income Tax (PIT); Economic Growth; Tax Avoidance; Tax Evasion (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ris:jotaed:0037

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