ABSTRACT

Capital gain tax (CCjT) is aform oftax chargeable on capital gains arisingfrom the disposal ofchargeable assets. This implies that anybody that generates incomefrom lhe disposal ofchargeable assets pays taxes known as capital gains tax. In Nigeria capital gains tax administration aims and tries to tax each company in the state more effectively in order to generate revenue. The study analysed the effect of capital gains tax on the economic growth ofNigeria (1999 2018). In Nigeria, to tackle the problem of high incidence oftax evasion and avoidance by laxpayers by examining the extent to which capital gains tax affect gross domestic product and gross national product. Secondary data was used and it was sourcedfrom CBNstatistical Bulletin. The data coveredfrom 1999 2018. The economic tool used was simple regression analysis, TTom the results, it was found that capital gain tax has significant effect on gross domestic product ofNigeria and capital gain tax has significant effect on gross nationalproduct ofNigeria. Based on thefindings, it was recommended that there is need to capture more taxable items into the data base of the nation so as to enable the government have an effect and efficient data base that will enhance more capital gain taxes tofurther improve economic growth in Nigeria. Also government should enact policies (such as the maximum timefor collection of all taxes) so to ensure adequate collections of taxation and government should embarked on massive awareness and sensitization on the importance oftaxation to the populace.