ABSTRACT

This study evaluated the effect of Tax Components on Government Capital Expenditure in Nigeria.  From  2007-2016. Tax  Components (proxied by Value Added Tax, Company Income Tax and Petroleum Profit Tax) and Government Expenditure were the variables studied in this work. This work employed Ex-post factor research design. This study was conducted within the Federal Inland Revenue Service (FIRS). Data were sourced through secondary sources of data collection, obtained from both the National Bureau of Statistics (NBS) Bulletin  and Central Bank of Nigeria (CBN), FIRS annual compiled books of records. The result of the study showed that value added tax has a significant effect on government capital expenditure (GCE). The  study also, revealed that  company income tax has no significant effect on government capital expenditure (GCE) in Nigeria. Furthermore, the study revealed that petroleum profit tax has no significant effect on government capital expenditure (GCE). The estimated coefficients of the regression parameter have a positive sign and thus conform to our a-priori expectation. The implication of this sign is that the dependent variable government capital expenditure (GCE) is positively affected by intellectual capital though there was no significant relationship between Tax components (proxied by Value Added Tax, Company Income Tax and Petroleum Profit Tax) and Government capital Expenditure. The research recommended additional  research to  test  and  analyze that  Government  should enhance their credibility and accountability towards the revenue so collected by their representatives and they should try to be transparent with its dealing and there should be a further research in other to extend the knowledge and the period covered, for proper analysis and conclusions.