An Assessment of the Impact of E-tax Payment System on Revenue Generation and Economic Growth in Katsina State Board of Internal Revenue
CHAPTER ONE
Objectives of the Study
The essential target of this examination is to investigate the impact of e-tax payment system on revenue generation and economic growth in katsina state board of internal revenue. While the specific objectives include to:
- Determine the effect of company income tax on revenue generation in Nigeria.
- Examine the effect of value added tax on revenue generation in Nigeria.
- Ascertain the effect of capital gain tax on revenue generation in Nigeria.
CHAPTER TWO
LITERATURE REVIEW
Conceptual Framework
E-Taxation
E-taxation is the system of collection and administration of tax procedure through an electronic medium. It is an online network through which the taxpayers have license to the platform via the use of internet, in other to have entrée into the facilities provided by the tax expert such as the registration for a tax identification number, electronic tax filing of tax returns (Olaoye & Atilola, 2018; Wasao, 2014).
In the USA, electronic taxation system was hosted in 1986; while in Australia, it was hosted in 1987. Canada introduced the practice of E-tax collection in 1993, while other industrialized states such as Malaysia and Netherlands started the use of E-tax collection in 2009. In Africa, Uganda started the use of E-tax collection in 2009, while Egypt introduced it in 2013.
In Nigeria e-tax system was hosted in 2015 by the Federal Inland Revenue Service (FIRS) in combination with Nigeria Inter – Bank Settlement System (NIBSS) in order to maintain a close nearness with the international trades towards automated payments systems, for e- government (Olaoye & Atilola, 2018). E-tax system was also introduced to upsurge revenue generation in Nigeria and for stress-free and convenience for tax payers to be able to pay taxes from diverse locations and at various time (Olaoye & Atilola, 2018; Okunowo, 2015). The following taxes are paid online in Nigeria by Nigerian taxpayer: Company Income Tax (CIT), Value Added Tax (VAT), Capital gains Tax (CGT), and Petroleum Profits Tax (PPT). When these taxes are paid via the online platform, taxpayer can applied and processed online his/her tax clearance certificate without visiting the office of the tax authority (Olaoye & Atilola, 2018; Abdulrazaq, 2015).
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This chapter provides an explanation of the research design and the methodology that was applied in carrying out the research study and justification for using a particular research design. It also describes the characteristic of the population which was used in the study, detailed description of sampling methods to be used, procedures, data collection instruments and the procedure of data collection and finally describes the appropriate data analysis methods.
Research Design
Orodho (2003) defines research design as the scheme, outline or plan that is used to generate answers to research problems. A research design can be regarded as an arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance with the research purpose. The study adopted descriptive research design since it describes the state of affairs as it is. Descriptive design is used when collecting information about people’s attitudes, opinions, habits and other possible behavior (Orodho and Kombo, 2005).
This investigation applied ex-post facto (quasi-experimental) research design. The ex-post facto configuration was applied on the premise that it doesn’t offer the investigation an opportunity to control the factors for the most part since they have recently occurred and can’t be affected. Among the various kinds of Quasi-test plans the Pre-Post (contrast in time) structure was viewed as proper for the investigation. It computes the impact of a treatment (i.e., an explanatory variable or an independent variable) on an outcome (i.e., a response variable or dependent variable) by likening the average variation over time in the outcome variable for the treatment group, likened to the average variation over time for the group. This method best suit the reason for this exploration as the examiner isolated the pay made through assessment into two, in light of the time electronic tax collection was applied in Katsina state and Nigeria at large.
CHAPTER FOUR
PRESENTATION/ANALYSIS OF DATA
The factors utilized in this investigation as determined in the model details are revenue generation (proxied by Internally generated Revenue – IGR), company income tax (CIT), value added tax (VAT) and capital gain tax (CGT). The assessment was upheld utilizing regression of Ordinary Least Square (OLS) strategy, through the assistance of E-view 8.1. The rundown of the examination result and its comparing understandings of the impact of e-tax assessment on income generation in Katsina state follow the presentation of data.
CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
CONCLUSIONS
Literature affirmed that over the years tax compliance levels remain low and tax collections are underneath the goals set by most revenue collection authorities. The introduction of e-tax systems in most nations across the universe, emerging nations like Nigeria, still face the tests of low tax compliance and tax administration. It was contended that e-tax systems are fast substituting paper-based tax reporting systems. Promising countless rewards over the old-style method of hard copy tax filing, these systems promise quicker processing, lower cost and amplified efficiency. This was the premise on which this examination was directed to assess the impact of E-tax assessment on income generation in Nigeria. In view of the result of the examination completed, it was inferred that:
- There is an idealistic noteworthy impact of pre (before the presentation of e-tax assessment) company income tax revenue on income generation in Nigeria and an antagonistic immaterial impact of post organization annual duty income on income generation in Nigeria (after the appearance of e-tax collection) at 5% level of critical. This implies E-tax collection has not contributed emphatically to organization income tax generation in Nigeria.
- There is a hopeful critical impact of pre value added tax revenue on income generation in Nigeria and a negative unimportant impact of post value added tax revenue on income generation in Nigeria at 5% level of critical. This implies E-tax assessment has not contributed emphatically to value added tax generation in Nigeria.
- There is a bothersome irrelevant impact of pre and post capital gain charge income on income generation in Nigeria at 5% level of noteworthy. This implies E-tax assessment has not contributed decidedly to capital gain tax generation in Nigeria.
Dissimilar to the negative impact of e-tax collection on post (after the appearance of e-tax collection) organization income tax revenue, value added tax income and capital gain charge income, e-tax collection has decidedly added to the generation of pre (before the presentation of e-tax assessment) organization personal duty income and value added tax income in Nigeria and the commitment is factually critical at 5% levels.
RECOMMENDATIONS
The accompanying proposals were made in accordance with the discoveries of the examination:
- So as to amplify the foreseen positive impact of the activity, government through Federal Inland Revenue Services should work out modalities on the best way to sharpen partnerships on the basics of E-tax collection.
- Government by means of Federal Inland Revenue Services must give useful, respectable, greatness and available site for one and all. Government ought to make versatile adaptation of electronic assessment entrance so as to build the appropriation rate by citizens as cell phones are in effect continuously utilized.
- Government by means of Federal Inland Revenue Services ought to guarantee that the arrangements of the laws which manage defaulters are executed. That is, ensuring that the defaulters are brought to book and managed in like manner.
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