ASSESSING THE IMPACT OF TAX PRO-MAX ON TAX REVENUE AND COLLECTION EFFICIENCY IN NIGERIA

Peace Peter

Journal of Taxation and Economic Development, 2023, vol. 22, issue 2, 70-84

Abstract: This study investigates the impact of the TaxPro-Max system on tax revenue and collection efficiency in Nigeria. Tax achievement rate is used as a measure of collection efficiency in this study. Utilizing paired sample t-tests on FIRS tax remittance data (2019-2023), the study reveals significant improvements in tax revenues and collection following TaxPro-Max implementation. Petroleum Profit Tax (PPT) revenues surged by 131%, while Value Added Tax (VAT) revenues had a remarkable 62% increase. However, the collection achievement rate increase of 147% for PPT was not statistically significant. Conversely, the collection achievement rates for Company Income Tax (CIT) and VAT exhibited substantial leaps, rising by 16% and 37%, respectively. These findings highlight the potential of TaxPro-Max in bolstering tax collection in Nigeria. The substantial increase in CIT and VAT revenues reflects the system’s positive impact on revenue generation. The study recommends that FIRS focus on addressing any lingering challenges associated with PPT collection and exploring avenues for further system optimization.

Keywords: TaxPro-Max; Tax Administration; Electronic tax management (search for similar items in EconPapers)
JEL-codes: E21 E63 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ris:jotaed:0080

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