Abstract: The study empirically examines the impact of tax revenue on economic performance of Nigeria. It considered the two major categories of taxes which are direct and indirect taxes, and the study focused on the various types of taxes collected by the federal, state and local governments. The secondary data – projected taxation values and tax revenue for the period 2001 to 2018 were obtained from the Central Bank of Nigeria Statistical Bulletin. The Ordinary Least Square (OLS) statistical technique was adopted in the analysis of the data using the simple regression model via the STATA 13.0 software. The analyses were done in sections: descriptive statistics (mean, standard deviation, minimum and maximum values, normality test (skewness, kurtosis, and Jarque-Bera), ordinary least square regression estimates analysed and interpreted include regression coefficients, r-squared (R2), adjusted r-squared, f-test, and t-test). The study has depicted on general note that tax revenue has impacted positively on economic performance of Nigeria, though, two of the taxes, namely value added tax (VAT) and customs and excise duties (CED) have significant impact on gross domestic product but negative relationship, while company income tax (CIT) and petroleum profit tax (PPT) did not show significant impact but depicted positive correlation. The import of this revelation is that more attention needs to be paid on indirect taxes in order to make them have the desired positive impact on economic performance of Nigeria. Well-equipped database on tax payers should be established by Government at all levels with the aim of identifying all possible sources of income of tax payers for tax purpose, for a better tax administration, adequate machinery should be put in place and strengthened, the level of the deterrent punishment should also be made stricter and there should be continuous education for the citizens on the importance of tax payment and the problems attached to non- performance of their civil obligations.
Keywords: Tax Revenue, Economic Performance, tax administration, Nigeria.
Title: IMPACT OF TAX REVENUE ON ECONOMIC PERFORMANCE OF NIGERIA
Author: Eze Gbalam Peter, Emmanuel ATAGBORO
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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