Full Length Research Paper
Impact of Companies Income Tax, Petroleum Profits Tax and Value-Added Tax in Nigeria
Moses AKPOKHIO and Moses C. EKPERIWARE
Article Number - 6376E52655335 | Vol. 3(3), pp. 31-47, November 2022 |
Received: 24 June 2022 | Accepted: 10 October 2022 | Published: 30 November 2022
Copyright © 2024 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0.
Abstract
The
study examined the impact of company income tax, petroleum profits tax, and
value-added tax in Nigeria, over the study period (1981 to 2021). The study
adopted descriptive and inferential statistics using tables and econometric
models to achieve the result. Petroleum profit Tax (PPT), Value Added Tax (VAT)
and Companies Income Tax (CIT), Gross Domestic Product (GDP) are the major
variables used in the study. Secondary data was used and sourced from CBN
Statistical Bulletin and Federal Inland Revenue Service. The results of the
unit root test obtained showed that the variables were both at levels and at
first difference, as such portend the need for ARDL long run relationship among
the variables. While in the bounds testing approach, there was a long run
relationship between government financing, economic growth and infrastructural
development. Furthermore, in the relationship of government financing and
infrastructural development the result revealed that there is long run
relationship between disaggregated variables of government financing on
economic growth and infrastructural development in Nigeria. The coefficient of
the error correction model is the speed of the adjustment of infrastructural
development to shocks in exogenous variables in the model. The study therefore
concluded that companies’ income tax, petroleum profits tax, and value added
tax have a significant effect on economic growth and development in Nigeria.
Therefore, the study recommends that government should engage in a complete re-organization
of the tax administrative machineries in order to reduce to tolerable levels
the problem of tax evasion and avoidance, and to enhance the tax base of
government; employment opportunities should be created; and a good environment
for entrepreneurship and innovation to thrive should be made available, using
tax proceeds. Â Keywords:
Taxation, Economic Growth, Tax authority, Tax base, Tax administration. Â
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Authors
Moses AKPOKHIO and Moses C. EKPERIWARE*
Caleb University, Nigeria.
*Corresponding author. Email: [email protected];
[email protected]
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How to Cite this Article
Akpokhio, M. & Ekperiware, M. C. (2022). Impact of Companies
Income Tax, Petroleum Profits Tax and Value-Added Tax in Nigeria. Journal of Economics, Business Management
and Administration, 3(3), 31-47.
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