TAX REVENUE AND ECONOMIC GROWTH IN NIGERIA

John Obiora Anyaduba and Dickson Osamudiamen Efionayi ()
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John Obiora Anyaduba: Department of Accounting, Postal: Faculty of Management Sciences,, University of Benin, Benin City, Nigeria, https://journal.citn.org/
Dickson Osamudiamen Efionayi: Department of Accounting,, Postal: Faculty of Management Sciences,, University of Benin, Benin City, Nigeria,, https://journal.citn.org/

Journal of Taxation and Economic Development, 2020, vol. 19, issue 1, 15-34

Abstract: This study investigated the impact of tax revenue on economic growth using adjusted and unadjusted GDP. Data for the study were collected from the annual abstract of National Bureau of Statistics (NBS) and Central Bank of Nigeria Statistical Bulletin (CBN) from 1984 to 2018. Economic growth was proxy using unadjusted GDP (Nominal GDP), adjusted GDP (RGDP), and analysed using Error Correction Models (ECMs). The results from the study revealed that Petroleum Profits Tax (PPT) had a positive influence on economic growth when GDP was adjusted and a negative influence when GDP was unadjusted for inflation. Value Added Tax (VAT) had a negative influence on economic growth when GDP was unadjusted for inflation and a positive influence on economic growth when GDP was adjusted for inflation. Companies Income Tax (CIT) had a negative influence on economic growth when GDP was adjusted and a positive influence when unadjusted for inflation. Custom and Excise Duties (CED) had a positive influence on economic growth when GDP was unadjusted and unadjusted. The study concludes that for CED researchers are free to use either GDP or RGDP as a proxy for economic growth but PPT, CIT and VAT researchers will find mixed result in using GDP or RGDP as a proxy for economic growth.

Keywords: Adjusted GDP; economic growth; taxation; unadjusted GDP. (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ris:jotaed:0038

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