ABSTRACT

The whole essence oftax revenue is to generate revenue to advance the welfare ofthe people of a nation with on promoting economic growth and development of a country through the provision of basic amenities for improved public services via proper administrative system, and structures, Tax revenue plays a crucial role in promoting economic activity growth and development. A critical challenge before tax administration in the 21st century Nigeria is to advance the frontiers and benefits oftax revenue in our personal and business lives which include: promoting economic activity; facilitating savings and investment; and generating strategic competitive advantage. Iftax administration does not for any reason meet the above challenges, then there is a desperate need for reform in the area oftax regime, and in the administration oftaxes. Tax revenue is power tool of economic growth and a major player in every economy of the world. It is never static but dynamic and should reflect current realities prevailing in the economy. The tax system is an opportunity of government to collect additional revenue besides other sources ofincome, which is needed in discharging its pressing obligations. The main objective ofthe study is to examine the impact oftaxation on economic growth ofNigeria other specific objectives include: To investigate the impact ofpetroleum profit tax on the growth ofthe economy ofNigeria. To examine the impact of company income tax on the growth of the economy of Nigeria. To ascertain the impact of personal income tax on economic growth ofNigeria. On the basis ofour analysis and findings, the following conclusions should be drawn about the impact of taxation and economic growth in Nigeria. The objectives of this study have been to investigate the impact of taxation and gross domestic product in Nigeria. The broad objective of this study was to investigate the growth implications ofPetroleum Profits tax in Nigeria against the backdrop. The study was motivated by the diverse theoretic and conflicting evidence on the relationship between Petroleum Profits tax and economic growth in Nigeria. Some explanatory variables of inflation rate, value added tax. The variable of interest - Petroleum Profits tax was found to have a negatively and statistically significant impact on economic growth in Nigeria