ABSTRACT

Tax policies represents key resources allocator between the public and private sectors in Nigeria. This is why I have taken the pains to look at the causes of low tax revenue in Abia State as compared Lagos State where tax represents 45% of its revenue, Rivers State with 35%, Akwa Ibom 30%. The low tax revenue has affected the rapid development of the state. The result is due to tax system (administration) operating in the state (administrative, compliance problems). In doing this research work, Chapter One look at the statement of the problems, research questions, hypothesis etc. Chapter Two critically look at the author's findings or the literature review; In Chapter three, Pearson's Product Moment Correlation Coefficient (PMCC) was used as a technique for the analysis of my research work which was a secondary data made up of ten years tax revenue culled from Abia State budget booklet Abia State. In Chapter Four, the data was analyzed using Sample coefficient of determination r2, coefficient of correlation r and population correlation coefficient p to test the two out of the three hypotheses and malyze the data. My results indicated a positive relationship between tax system, administrative and compliance policies and revenue generation in Abia State. And my Chapter Five was summary in which I recommended that an effective national or state tax policy be passed into law, that government consider tax payers, that government improve revenue by way of sharing it among the tiers of government. Government should promulgate penalties for tax evaders.