Evaluating the impact of value added tax on the economic. Many of them have covered all its ramifications while some have effectively appraised the problem of tax administration in. This study examined the impact of etaxation on nigerias revenue and economic growth. The research design adopted in this study was causal study. In this chapter, we examine the relationship between taxation and economic growth in a resource rich country, using nigeria as a case study. The impact of taxation is integrated into growth models by its impact on the individual growth variables, which are capital accumulation and investment, human. Impact of value added tax on nigerian economic growth project material. Please, sit back and study the below research material carefully. However, one means of generating the amount of revenue for providing the needed infrastructure is through a well. The relationship between indirect taxation and economic growth has been examined severally by different researchers. The study focuses on the impact of petroleum profit tax, company income tax, personal income tax, value added tax revenue on nigeria s economic growth between 1980 and 20. Tax systems are also used to promote other objectives, such as equity, and to address social and economic concerns. Get free research paper on impact of multiple taxation on small and medium scale businesses in nigeria project topics and materials in nigeria. The impact of taxation on nigeria economy growth, largest undergraduate projects repository, research works and materials.
Ordinary least square ols estimation technique is employed in estimating the specified model. The aim of this paper is to evaluate the impact of individual types of taxes on the economic growth by utilizing regression analysis on the oecd countries for the period of 20002011. The purpose of this study is to investigate the impact of vat on the nigeria economy as it relates to how it can improve government revenue and throws more light in its contribution to the economic growth and development of nigeria. Value added tax has no significant positive relationship with economic growth in nigeria. The impact of taxation as an aid to economic development includes abstract and chapter one, complete project material available the impact of taxation as an aid to economic development in edo statea case study of oredo local government area, edo state, nigeria proposalthe research work will discuss in detail the impact of taxation as an aid to economic development in edo state. Taxation of corporations and their impact on economic. The studys objective was to determine the effect of value added tax on economic growth in kenya. The major findings from the analysis of data and the testing of the hypothesis showed there exist a positive relationship between taxation and the growth and development of the nigerian economy. Tax systems are primarily aimed at financing public expenditures. The first need of any modern government is to generate enough revenue which is indeed the breath of its nostrils. Thus, taxation is by far one the most significant source of revenue for the.
Chapter 2 the impact of taxation on entrepreneurship in the traditional and the collaborative economy. Over the years, small and medium scale enterprises smes have been an avenue of job creation and the empowerment of nigerian citizens, providing about 50% of all jobs in nigeria and also for local capital formation. Okafor 2012 explores the impact of income tax revenue on the economic growth of nigeria as proxied by the gross domestic product gdp. Data were sourced from central bank statistical bulletin and extracted through desk. The impact of taxation is integrated into growth models by its impact on the individual growth variables, which are capital accumulation and investment, human capital and technology. The roles of value added tax in the economic growth of. This study examined the impact of e taxation on nigeria s revenue and economic growth. Taxation and economic growth in nigeria onakoya, adegbemi babatunde1 afintinni, oluwatobi ibukun2 1,2department of economics, banking and finance, babcock university, ilishan remo, nigeria abstract over several decades, taxation has been taken as a veritable medium of engineering the growth or performance of an economy. Apart from being a major source of revenue for government to provide goods and services needed by the people, tax policies, can and do stimulate economic growth and job creation through its impact on investment and capital formation in the economy. The impact of tax reform on federal revenue generation in nigeria dickson. The case of eu countries baranova veronika, janickova lenka abstract one of the most debated questions in economy is the relationship between tax rates and economic growth. The ordinary least square ols regression analysis was adopted to explore the relationship between the gdp the dependent variable and a set of federal. World bank and pwc 2015 3 paying taxes survey in 2005 revealed that taxpayers are able to file tax returns electronically in about 45% of the countries.
Impact of fdi on nigerian economy nepad, which has the attraction of foreign investment to africa as a major component. Impact of taxation revenue on economic growth of nigeria. Thus, taxation is by far one the most significant source of revenue for the government. While the contribution of vat as a source of revenue in nigeria is encouraging, there is the need to systematically assess its impact on the economy. Impact of multiple taxation on small and medium scale. Effects of multiple taxation on the performance of small. Understanding the impact of taxation on economic growth can be viewed from two major schools of thought.
Project topic on the impact of taxation on nigeria economy. Jan 29, 2015 the impact of taxation is integrated into growth models by its impact on the individual growth variables, which are capital accumulation and investment, human capital and technology. In addition to the oral interview and questionnaires distributed. Effect of value added tax, customs and excise duties on. More specifically, the study sought to assess government expenditure and economic growth. The impact of taxation on nigeria economy growth projectclue. Few, ifany have examined this line of research in nigeria. Over the years, it has been observed that revenue generated from indirect taxation has been substantial and constantly on the increase.
The study recommends that there be a friendly tax policy for all start up businesses preferably a tax holiday, or an introduction of a growth limit which can be said to be a. Given that the purpose of introducing electronic tax system is to improve revenue collection which will in turn improve the countrys economic growth, the study empirically examined how the implementation of etaxation in 2015 has affected tax revenue, federally collected revenue and taxtogdp ratio. However, one means of generating the amount of revenue for providing the needed infrastructure is through a well structured. We explore the linkages between availability of higher resource revenue and lower taxation effort of other revenue categories and the effects of these on growth. The impact of taxation in nigerian economy free essays. The impact of taxation on economic growth in south africa. Taxation and economic growth in a resourcerich country. Let us look at the impact of taxes on the economy of a country in details now. Impact of etaxation on nigerias revenue and economic growth. In recent time, the impact of paying tax is not felt by payees in nigeria and indeed has put them in doubt and confusion as to the use of the fund by the relevant government in the development of the economy. Apart from being a major source of revenue for government to provide goods and services needed by the people, tax policies, can and do stimulate economic growth and job creation through its impact on investment and capital formation in. Impact of etaxation on nigerias revenue and economic. The conclusion draw from this study revealed the following.
Department of accounting and finance faculty of management sciences, lagos state university, lagos, nigeria eaddress. The impact of taxation as an aid to economic development includes abstract and chapter one, complete project material available the impact of taxation as an aid to economic development in edo statea case study of oredo local government area, edo state, nigeriaproposalthe research work will discuss in detail the impact of taxation as an aid to. This study was designed to investigate the tax revenue and nigerian economic growth for period of three decade, using time series data from 1986 to 2015. The impact of taxation on nigeria economy includes abstract and chapter one, complete project material available the impact of taxation on nigeria economy abstract this research work was carried out in order to find out if actually there is any impact which taxation has on nigerian economy and the survey for this study is based on enugu state. This study investigated the empirical relationship between nonextractive fdi and economic growth in nigeria and examined the determinants of fdi into the nigerian economy. The main objective of this study is to determine the impact of company income taxation on the profitability of. The study involves comparative analysis of the impact of fiscal policy on economic growth in nigeria during regulation and deregulation periods. Impact of indirect taxation on economic growth in nigeria. The overall objective of the study is to determine and assess the effects of taxes towards the growth and development of the nigeria economy.
The impact of tax policy on economic growth in nigeria. Impact of taxation on the economy education in kenya. Taxation and economic growth 145 by which this can be achieved. The simplest method, called the ak model, is to assume that capital is the only input into production and.
The study found that there was a significant correlation between taxation and smes sector growth. Ahuru department of economics and statisticsfaculty of social sciences, university of benin, benin city abstract the main objective of this paper is to ascertain the impact of tax reforms on tax revenue generation in nigeria. The study examined the impact of tax revenue on the nigerian economy. Uniprojects aim of providing impact of value added tax on nigerian economic growth project research material is to reduce the stress of moving from one school library to another all in the name of searching for impact of value added tax on nigerian economic growth research materials. The objective of this study is to investigate the impact of taxation on economic development of nigeria proxy by the gross domestic product gdp. Indeed, progressivity of personal income taxation is deleterious to economic growth. The impact of tax revenue on nigerian economy case of federal board of inland revenue matthew a. This study therefore explored the impact of indirect taxation and economic growth as a possible means of diversifying the nigerian revenue. Yearly data for south africa for the period 1981 2016 was used to develop the autoregressive distribution lag ardl approach.
The effect of tax evasion and avoidance on nigerias. World bank and pwc 2015 3 paying taxes survey in 2005 revealed that taxpayers are able to file tax returns electronically in about 45% of the countries that were surveyed. The empirical results confirm that there is a negative relationship between taxes and economic growth in south africa. The main objective of the study is to investigate the impact of taxation revenue on nigeria economic growth. In trying to judge to what degree the tax system may. Ordinary least square ols estimation technique is employed in estimating the specified. Government imposes levies on individuals, companies, organisations in the form of tax so government machinery. The analysis in this paper is based on extended neoclassical growth model of mankiw, romer and weil 1992, and for the verification of relation between taxation.
The effect of taxation on nigeria economy project topics. The motive to accelerate investment, saving and economic growth and development in nigeria through the use of tax administration calls for the study. The study thus recommends amongst others that government policies and measures as it pertain fiscal policies in nigeria should be streamlined to stimulate economic growth and development by ensuring that there tailored towards growth of the economy. The target population for this study consisted of the quarterly reports on the state of the kenyan economy in relation to productivity. Impact of value added tax on nigerian economic growth. The study period spans economic cycles for about 66 percent of the life of. All of these approaches achieve the same end that of sustained growth but by different routes. Aug 04, 2012 consumption is the biggest component of the gdp and therefore a reduction in consumption is likely to slow down economic growth. Chelliah 1989 observed that an increase in indirect taxation compared to direct taxation reduces economic growth more than direct taxation does. The study thus recommends amongst others that government policies and measures as it pertain fiscal policies in nigeria should be streamlined to stimulate economic growth and development by ensuring. It aimed to give a detailed examination of the effect of tax avoidance on the economic growth and development in nigeria. Econometric analysis of time series data from central bank of nigeria was conducted. Secondary data were sourced from the central bank of nigeria, international monetary fund and the.
Using three approaches, we consider the impact of a major tax reforma 5 percentage point cut in marginal tax rateson longterm growth rates. Taxation of corporations and their impact on economic growth. Especially taxation of corporations has great importance because a corporate tax. Consumption is the biggest component of the gdp and therefore a reduction in consumption is likely to slow down economic growth. This is assessing the various effects of taxation and the various tax policies to determine if they have resulted into positive or negative growth and development of the nigerian economy over time. Recent research works see 6 on the impact of taxation on the nigerian economy lumped up. Various studies on the impact of government revenue on economic growth hardly consider vat as a separate variable. Total tax revenue to gross domestic product tend to grow as the nation develops. This study is on the effects of multiple taxation on the performance of small and medium scale enterprises smes.
The aim of this research is to verify the expected negative relationship between corporate taxation and longterm economic growth. This paper investigates the impact of taxation on economic growth in south africa. The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. The study examined the impact of government expenditure on economic growth in nigeria, using the time frame 20002015 5 years. This is approved for students in accountancy, business, computer science, economics, engineering, arts. Taxes, as mentioned earlier, reduce the disposable income of consumers. The objective of this study was to examine the significant difference between the effects of oil and non oil tax revenue on economic growth in nigeria. Time series data were applied in carrying out this research work. For the purpose of this study, the researchers would be concerned with the impact of taxation on nigeria economy. The effect of tax evasion and avoidance on nigerias economic. Ofurum et al impact of etaxation on nigerias revenue and economic growth. Taxation is undoubtedly a veritable instrument for national development. Project topic on the impact of taxation on nigeria. Uniprojects aim of providing impact of value added tax on nigerian economic growth project research material is to reduce the stress of moving from one school library to another all in the name of searching for impact.
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