ABSTRACT

This project work was designed to study tire relationship between tax incentive and industrial development in Nigeria with special reference to Abia State. Chapter one of the study dealt with tire introduction of the research topic in view, problems, objectives and the relevance of the study. The objectives ofthe study includes the following; to find out if tax incentives actually enhance economic growth and industrial development, if individuals/firms are aware of it, if they claim it, if it attracts foreign investors into firms operating in those areas where they are available and also to know the opinion ofrespondents on the relationship between economic development and tax incentives in Nigeria. Some research questions were raised for the study and necessary data collected through the use of primary and secondary data. The questionnaire was the main instrument used. The research hypothesis are; Hoj- There is no significant difference in the opinion of respondents as to existence of significant relationship between economic growth/development and tax incentives. Ho2-There is no significant difference in the opinion of respondents as to whether availability of tax incentives attracts foreign investors’ investment in the companies/areas enjoying the incentives. Data analysis was based on simple percentages and chi-square (X2) technique was used to test the “goodness of fit”, (the level of significance). Whereby the null hypothesis was rejected and the alternative accepted that there is significant difference in the opinion of respondents as to the existence of significant relationship between economic growth /development and tax incentives. Also that tire availability of tax incentives attract foreign investors investment in the companies/areas enjoying the incentives. From the findings, it was being recommended that; industries established in economically backward areas of die state, special tax incentives should be granted them, government should use tax incentives to encourage foreign exchange conservation, industries benefiting from pioneer relief/waiver period should be required to send periodical progress report.