The Impact of Tax Reforms on Government Revenue Generation in Nigeria (original) (raw)
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TAX POLICY AND REVENUE GENERATION IN NIGERIA
Global Research Journal of Economic and Social Development, 2021
Taxation, besides its revenue generation capacity, can also be used as a fiscal policy tool to shape the economy. Considering that the Nigerian tax laws have witnessed significant changes over the period, it becomes imperative to assess the performance of such policies through its effect on the revenue generation in Nigeria. This study, therefore, examines the tax policy and revenue generation in Nigeria, the various tax incentives currently available in the different tax laws, evaluates how taxation and tax policies have affected the economy of Nigeria and the effectiveness of tax policy peroxide by indirect tax policy and tax incentive policy as a government strategy tool for alternate revenue generation. Design/Methodology/Approach: The research was carried out using primary data with the use of structured questionnaire which sought responses from FIRS, tax consultants and taxpayers which was analyzed using multiple regressions to find relationship among the variables. With a positive correlation of 0.279 and 0.265 on indirect tax policy and tax incentive policy respectively Finding: The study found that, tax policies have a significant relationship with the revenue generation of Nigeria. Originality/Value Added: The study, therefore, recommends that government should focus on indirect taxes to increase revenue collection with low administrative costs and compliance challenges. The chartered tax practitioners should be allowed to play leading roles in tax policy and implementation to ensure a robust tax system. Government should always consider tax payers and other key stakeholders' interests in fiscal policy formulation and implementation in order to achieve improved tax compliance rate in the country. All government agencies and other stakeholders should ensure the full adherence to the provisions of the National tax policy.
Tax Reforms as a Panacea to Effective Fiscal Policy in Nigeria
Nigeria revenues have historically been low and still dependent on the oil sector for his income despite the present administration promotion of economic diversification. This study examines tax reforms as a panacea to effective fiscal policy in Nigeria. Data were derived from the review of journals, textbooks, newspapers and internet. Findings shows that there is a gradual shift from oil to non-oil sector, revenues generated from taxes have become part of the national budget; many organizations have been integrated into tax system of the government. This resulted to improvement in the provision of infrastructure in Nigeria. So far, attention of the government is on formal sector for his revenue generation and the informal sectors are neglected. Given the huge gap on our fiscal policy deficit, the discourse recommends that a broad-based comprehensive scheme should be designed to fully harness the potential revenue from the formal and the informal sector. Tax incentives should be internationally competitive and also to be restricted to such important sectors such as, export-oriented industries, industries located in rural areas and solid minerals development. The government must be honest and more transparent with regard to the way public funds are dispensed so that the citizens can be motivated to pay their taxes.
Tax Revenue Effects on Government Revenue Generation in Nigeria
GUSAU JOURNAL OF ECONOMICS AND DEVELOPMENT STUDIES
The study focussed on how Nigeria's value-added tax affected the country's ability to generate income spanning twenty years (1999-2019). The journal of the Chartered Institute of Taxation of Nigeria, Federal Inland Revenue Service Annual Reports, and the Central Bank of Nigeria Statistical Bulletin were sought out as secondary sources of data. A simple regression technique was used to accomplish the analysis. Results indicated that company income tax and Value Added Tax have a statistically significant impact on Nigeria's income generation. The report recommends the following actions: the government should make every effort to enhance the manner in which value-added tax is collected; all VAT agents should be committed and appear honest with regard to collection and payment Moreover, the country's tax base will grow as goods and services are taxed more which includes the activities of the informal sector.
Taxation and Revenue Generation: An Empirical Investigation of Selected States in Nigeria
This study is aimed at the assessment of taxation on revenue generation in Nigeria, attention is given to FCT and some selected states. The study is also aimed at highlighting the concept and nature of taxation, objectives of taxation, classification of taxes, Nigeria's major taxes and other issues that relate to taxation. In achieving the objective of the study, the researcher adopted primary and secondary sources of data to present and analyze the information for the study. The testing of hypotheses was done using regression analysis via SPSS version 17.0. The research discovered among others that, taxation has a significant contribution on revenue generation, taxation has a significant contribution on Gross Domestic Product (GDP) and tax evasion and tax avoidance have a significant effect on revenue generation in Nigeria. The research recommends among others that well equipped database on tax payers should be established by the Federal, State and Local Governments with the aim of identifying all possible sources of income of tax payers for tax purpose, the tax collection processes most be free from corruption and embezzlement and stringent penalties should be meted by the federal, state and local governments to people who evade and avoid tax payments in order to discourage tax evasion and tax avoidance.
Impact of Tax Administration on Government Revenue in a Developing Economy – A Case Study of Nigeria
This paper attempts to look at the Nigeria Tax administration and its capacity to reduce tax evasion and generate revenue for development desire of the populace. The study made use of 121 online survey questionnaires containing 25 relevant questions. Descriptive statistics were used to analyse 93 usable responses. The study found among other things that increasing tax revenue is a function of effective enforcement strategy which is the pure responsibility of tax administration. Nigeria lack enforcement machineries which include among other things, adequate manpower, computers and effective postal and communication system. The study has clear practical implications for tax practitioners and governments policy makers in developing countries in particular.
Impacts of Taxation on Economic Development in Nigeria
International journal of innovative research and development, 2022
Impacts of Taxation on Economic Development in Nigeria 1. Introduction The rate of economic development creates an inequality among the countries of the world. Economic development ensures an increase in output together with a change in technical and institutional arrangement involved in production (Satope and Akanbi, 2014). Countries that are developed economically have an advancement in factors that brings about transformation in culture, social, educational, political and economic standards (Mick, 2007). Belshaw and Livingstone (2002) noted that improvement in economic development provides a livelihood for the majority of the population. In order to achieve a sustainable economic development, government ensures regular inflow of revenue into its treasuries, one of which is taxation which is used by government as an instrument to raise the necessary funds for public expenditure, to redistribute income, to stabilize the economy, to overcome externalities, to influence the allocation of resources, while at the same time should be supportive to the economy (Stoilova and Patonov, 2012). There can be little doubt that the nature of the economy, and its structural characteristics, influence the ability to tax and the types of taxes that can be imposed. The standard economic approach to taxation and development focuses on how economic change influences the evolution of the tax system (Besley and Persson, 2013). This in turn allows tax revenue to grow and new taxes to be introduced, favours investments in the administrative ability to collect taxes, and fuels demand for infrastructure and redistributive taxation and spending among the population (Bräutigam, 2008) Azubike (2009) is of the view that tax is a major player in every society of the world. The tax system is an opportunity for government to collect additional revenue needed in discharging its pressing obligations. A tax system offers itself as one of the most effective means of mobilizing a nation's internal resources and if lends itself to creating an environment conducive to the promotion of economic growth. Nzontta (2007) on the other hand, argues that taxes constitute key sources of revenue to the federation account shared by the federal, state and local governments. Appah, et al (2004) assert that tax is a compulsory levy imposed on a subject or upon his property by the government to provide security, social amenities and create conditions for the economic well-being of the society. Tosuu and Abizadeh (2005) acknowledge that taxes are used as proxy for fiscal policy. They outlined five possible mechanisms by which taxes can affect economic growth. First, taxes can inhibit investment rate through such taxes as
There is a public concern for a return on the formulation and implementation of macroeconomic policies. The study aim at determining effect of fiscal policy on Nigeria economic development. The study adopted secondary data obtained from the CBN 2019 statistical bulletin for the period of 1999-2018. The study used economic views for regression analysis and Granger Causality Test. The alternative hypothesis (Hi) "government's revenue and expenditure policies have significant effects on Nigeria economic development" and "annual budgets of government have significantly contributed to Nigeria economic development" are accepted. The study concluded that fiscal policy components are very significant to economic development. The study recommended that tax revenue generation policies should be addressed to avoid leakages in the economy.
European Journal of Business and Management, 2020
The study examines "The Impact of Taxation as an aid to Economic Development in Nigeria , Problems and Prospects" (A Study of South East States, Nigeria). Simple percentage were used to analyze the response from the distributed questionnaires and ANOVA were used in analyzing the table. In respect to my findings, my main findings is that there are poor tax administration, tax evasion and avoidance were the order of the day. The study revealed that taxation is the main sources of revenue in Nigeria. The study also recommends that public enlightenment on taxation, elimination of loop-wholes in tax laws, computerization of tax records and total reorganization of tax officers in Nigeria tax system enhances tax administration.
Revenue Implications of Nigeria’S Tax System
This is a study of the properties of the Nigeria's tax system particularly the bases of the company income tax, value added tax and personal income tax. The results indicate that their bases are not stable (not persistent and volatile). However, while the bases of the company income tax and personal income tax are more sensitive to cyclical swings (current state of the economy over time), that of the value added tax (VAT) is not. The policy implications of these findings support the recent government tax policy reform of a shift in focus in the tax system from direct taxation to indirect taxation. With the tax base of VAT being insensitive to the current state of the economy, the revenue therefrom will not drop sharply when the economy slows down. It will also shield the government from budgetary shortfalls as it will likely cushion against sharp declines in aggregate tax revenues.
Tax Administration and Generation of Tax Revenue in Nigeria
International Journal of Scientific and Management Research, 2022
The purpose of the study was to evaluate how tax administration affects tax revenue generation in Nigeria. The government tax administration mechanisms, which are used to monitor tax collection, include tax audit, tax amnesty, tax enforcement and tax penalties. The study adopted survey research design analysed with descriptive and inferential statistics. The population of the study consisted of 302 audits and risk department personnel from the State Board of Internal Revenue and the Federal Inland Revenue Service in the southwest Nigerian states of Ekiti, Ondo, Osun, Oyo, Ogun, and Lagos. A total of 172 persons were sampled using the Taro Yamane sampling method to obtain the sample size. The researcher created a closed-ended questionnaire to obtain primary data for the study. The data were analysed using multiple linear regression analysis to obtain the inferential statistics. According to the findings, tax penalties should be strong enough to deter would-be tax defaulters, tax admi...