TAX REVENUE AND ECONOMIC DEVELOPMENT: EMPIRICAL EVIDENCE FROM NIGERIA.
Abstract
The economic development of Nigeria is quiet bad, the standard of living is very poor, and education level is below average. So Tax revenue is needed to finance certain factors such as education, Standard of living and Health. The aim of this study was to find out the effect of Tax revenue collected by the federal government on economic development in Nigeria. The objective of this study is to evaluate the effect of tax revenue on economic development. The methodology used in this study was an ex - post facto research design. The sample technique used in this study is a Judgmental sampling technique. The study evaluated the effect of tax revenue on the economic development in Nigeria from 2003-2020. The data was obtained from the publication of Federal Inland Revenue service, Central Bank of Nigeria, Annual Statistical Bulletins, and the National Bureau of Statistical. The reliability of the data was premised on published reports and bulletins from CBN. Data was analysis using descriptive and inferential statistics. The findings of this study shows that petroleum profit, company income tax, value added tax, and education tax has a significant relationship / effect on economic development, because the p-value for petroleum profit, company income tax, value added tax and education tax is less than the level of significance. Therefore the study concluded that tax revenue (Petroleum Profit Tax, Companies Income Tax, Valued Added Tax, and Education Tax) has a significance effect on Economic Development (Human development Index). The studies recommend that the government endeavour to use those taxes paid by the tax payer in the development the economic as a whole.
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