ABSTRACT

The study examined the effects of taxation on the economic wellbeing of rural dwellers in Akwa Ibom State. It sought to assess the impacts of taxation on the standard of living of the rural dwellers, evaluate the effect that taxation has on the level of employment in the rural areas and to examine the relationship between taxation and healthcare services in the rural communities. A review of related literature was drawn, questionnaires developed and administered on the taxpayers using the Taro Yamani formula in determining the sample size which was 180. The data collected from the survey were presented, analyzed using simple percentage and correlation analysis. All hypotheses formulated were tested at 5% level of significance. The research findings disclosed that empirically, taxation has no significant impact on the standard of living of the rural dwellers, taxation has a positive and significant relationship with the level of employment and with healthcare services in the rural communities. The researcher therefore concludes and recommends that, efforts should be geared toward improved tax revenue collection and utilization for wealth creation and material comfort of the rural dwellers, the tax system be restructured to expand the local government frontiers in terms of tax jurisdiction, effort should be made to strengthen the tax administration machineries and to block the loopholes as these among others will bring about an increased level of employment and affordable healthcare services in the rural communities.