Abstract

This research is on the contribution of Revenue Generation of personal income

tax in Abia State. The main purpose was to know how personal income tax has

contributed to the revenue of the State. The sources of data for collection of

Primary and Secondary data were used while the data collected were analyzed

in tabular form using percentages to show the degree of responses. To test the

hypothesis formulated. Regression analysis statistics was used. The major

findings of this research are: Incentives given to Board of Internal Revenue

Staff is considered not to be enough. The State do not have a comprehensive list

of taxable persons. It may not be easy to know those who are consistently

paying or avoiding tax. The tax revenue from Pay As You Earn (PAYE) from

the back of the State revenue from taxes. Costs incurred in collecting personal

income tax do not outweigh the gains. The self employed persons posse the

greatest resistance to the collection of personal income tax in Abia. On the

basis of finding, it was recommended that there is need to compile a

comprehensive list of taxation persons to enable tax agencies know those who

consistently avoid tax. The self employed should be encourage to pay their

taxes promptly and correctly, besides, tax offenders should be punished to serve

as a deterrent to others, more incentives should be introduced for the staff of

Board of Internal Revenue to motivate them further.