Tax and the Economic Performance in Nigeria
CHAPTER ONE
OBJECTIVES OF THE STUDY
This study will therefore aim at ascertaining the key causes of tax and economic performance in Nigeria. The objectives of this study include the following:
- To examine the causes and reasons for high tax evasion on economic performance of Nigeria.
- To evaluate government revenue generation to financing ever-increasing economic needs of the state.
- To assess economic growth and development in Nigerian.
- To examine the effect on economy and high rate of tax evasion and avoidance.
- To resolve adequate tax incentives and taxpayer education in the state.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Concepts of Taxation
Tax is a compulsory levy made by all concerned to the government of a country from which essential services are rendered, without necessarily offering an explanation on how the money generated was spent or equating the services with the money collected. It is an instrument employed by the government for generating public funds (Anyaduba, 2004; Ofoegbu, et al. 2016). Paina (2003) reiterated that taxation isa required payment imposed by the government on the income, profit or wealth of individuals, group of persons, and corporate organisations. A well-designed tax system can help government in developing countries prioritise their spending, build stable institutions, and improve democratic accountability (Brautigam, 2008).When that is achieved the people will be consciously motivated to pay their taxes. Taxescan be used as an instrument for achieving both micro and macroeconomic objectives especially in developing countries such as Nigeria. Ola, (2001) noted that tax policy serve as an instrument of redistribution of wealth to ensure social justice. Summarily, Nzotta (2007) documented four basic issues for taxation to play its functions in any society. First, a tax is a compulsory contribution made by the citizens to the government and this contribution is for general common use. Secondly, a tax imposes a general obligation on the tax payer. Thirdly, there is a presumption that the contribution to the public revenue made by the tax payer may not be equivalent to the benefits received. Finally, a tax is not imposed on a citizen by the government because it has rendered specific services to him or his family. Consequently, a good tax structure plays a multiple role in the process of economic growth and development of any nation which Nigeria is not an exception (Appah, 2010). Economic growth is the increase in the value of goods and services produced by a country over a period and Real Gross Domestic Product (Rgdp) is used as a proxy for economic growth. Real gross domestic product is an inflation-adjusted measure which reflects the value of all goods and services produced by an economy in a given year, usually expressed in base-year prices, and is often graded as constant-price or inflation-corrected GDP. Unlike nominal GDP, real GDP can account for changes in price level and provide a more accurate figure of economic growth.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to tax and the economic performance in Nigeria
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information on tax and the economic performance in Nigeria. 200 CBN, Lagos state was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
DATA ANALYSIS
The data collected from the respondents were analyzed in tabular form with simple percentage for easy understanding.
A total of 133(one hundred and thirty three) questionnaires were distributed and 133 questionnaires were returned.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain tax and the economic performance. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of tax and the economic performance
Summary
This study was on tax and the economic performance. Three objectives were raised which included: To examine the causes and reasons for high tax evasion on economic performance of Nigeria, to evaluate government revenue generation to financing ever-increasing economic needs of the state, to assess economic growth and development in Nigerian, to examine the effect on economy and high rate of tax evasion and avoidance and to resolve adequate tax incentives and taxpayer education in the state. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staffs of CBN. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up HR, economist, accountant and junior stadfs were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
The study investigates the relationship between tax revenue and Nigeria GDP. We used petroleum profit tax and company income tax as the two dimensions for our tax revenue using data obtained from the Central Bank of Nigeria statistical bulletin. We find that petroleum profit tax and company income tax show positive and significant effect on the Gross Domestic Product (GDP) in Nigeria. It is concluded that the revenue impacted positively on the growth of Nigeria economy
Recommendation
The study recommended that funds generated from the public should be properly utilized so that the growth of Nigeria economy will be positively affected. Also investment opportunities should be available in order to fostering economic growth. Therefore, government should increase its spending and also spend more s this will promote investment.
References
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