Relevance of Tax Revenue and Economic Growth in Nigeria (2008-2018)

Abstract

This study aims at investigating the relevance of tax revenue in driving economic growth in emerging market economy context. . Using data extracted from central bank of Nigeria statistical bulletin for various years and auto-regression estimation model, our study documents the existence of significant and positive relationship between petroleum profit taxes (PPT), Company Income Tax (CIT) on economic growth in Nigeria. Our findings further reveal that Value Added Tax (VAT) and Custom –excise duty (CED) exert negative influence on economic growth. However, the study provide evidence that VAT and CED  are insignificant in determining the economic growth in emerging market economy context with special interest in Nigeria This study provide further evidence that the higher the amount of tax revenue generated, the higher the level of economic growth   in the economy. There is a recommendation therefore that strong institutional reforms are panacea to prevent leakages of revenue from VAT and CED. 

Keywords: Company Income Tax, Nigeria economy, Petroleum Profit Tax, Value Added Tax, economic growth

DOI: https://doi.org/10.37745/ejaafr/vol8.no4.pp112-120.2020

Article Review Status: Published

Pages: 112-120 (Download PDF)

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