ABSTRACT

 This research project is an important study of the impact of tax incentives on the economic and industrial development in Nigeria. The study was motivated by the poor economic development in Nigeria, and the need to establish the role of tax incentive on economic and industrial development in Nigeria, that is to evaluate the effectiveness of tax incentive in developing the economic and industrial sectors of Nigeria including how it affects the total revenue of Nigerian Government. To solve the research problems, both primary and secondary data were collected using questionnaires and review of related works of other authors and researchers. The respondents comprised of sample of taxpayers in Abia State. In analyzing and presentation of data collected, frequency tables and simple percentages were used. Three hypotheses were formulated and tested with chi-square statistical technique, and the results shown that the three null hypotheses were rejected while the alternatives accepted. The findings of the study shown that tax incentives scheme significantly impacts on the economic and industrial development in Nigeria, it also affects government's total revenue. The conclusion of the study is that tax incentive is a very important fiscal measure that can be used to stimulate the growth and development of the economic and industrial sectors of Nigeria as well as increase government revenue in the long-long, if applied effectively and efficiently. Suggestions were also given on the modalities necessary for effective and efficient use of tax incentive scheme for rapid economic and industrial development in Nigeria, such as thorough review of all the tax laws in order to make tax incentives more adequate and effective to attract more investors in Nigeria economy.