EFFECT OF TAX REVENUE ON NATIONAL DEVELOPMENT OF NIGERIA
1 Department of Accountancy, Nnamdi Azikiwe University Awka, Anambra State, Nigeria
This study determined the effect of Tax Revenue on National Development of Nigeria for twenty-two years period covering from 1999-2020. Personal Income Tax, Company Income Tax and Value Added Tax were used to proxy Tax Revenue, while the dependent variable; National Development was measured by Per Capita Income. In line with the objectives of the study, three hypotheses were formulated. Ex-Post facto research design was employed. Secondary data were obtained from the publications of Federal Inland Revenue Service (FIRS) bulletin, Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS) and the World Bank statistical bulletins and were analyzed using E-Views 10.0 statistical software. The study employed inferential statistics using Pearson correlation, Augmented Dickey-Fuller (ADF) test, Ordinary Least Square regression analysis, Granger Causality test, Johansen Co-integration test and Error Correction Model. Findings from the empirical analysis showed that there is a significant negative relationship between Personal Income Tax, Company Income Tax, Value Added Tax and Per Capita Income at 5% level of significance. It was recommended inter alia that there should be continuous orientation and enlightenment programmes for company income taxpayers and tax officials. Government should be prudent and transparent in spending taxes collected so as to gain taxpayers confidence.
Keywords: Personal Income Tax, Company Income Tax and Value Added Tax, Per Capita Income
Ashiedu, I.P; Okafor, T.G; Amahalu, N.N & Obi, J.C (2022). Effect of Tax Revenue on National Development of Nigeria. International Journal of Advanced Academic Research, 8(1), pp50-64. Available online at: https://www.ijaar.org/articles/v8n1/ijaar- v8n1-Jan22-p8180.pdf.