ABSTRACT

This dissertation is an accounting research attempt to explore the impact of tax revenues on the economic indices of West African Commonwealth Countries from 1981 to 2018. In line with the altruistic behavior theory of taxation, it seeks to answer questions on the relevance of tax revenue to various indicators of citizens’ economic welfare such as gross domestic product growth rate, per capita income, gross fixed capital formation growth rate, unemployment rate and human development index. Data were electronically obtained from the official websites of International Center for Tax and Development, World Bank and Federal Inland Revenue Services of Nigeria. Ordinary least square regression analysis was employed in the analyses of hypotheses and findings show that direct tax revenue of West African Commonwealth countries has positive and significant impact on their economic indices whereas the indirect tax revenue relates inversely with the economic indices. The study concludes that taxation remains a potent tool for development of the group whereas indirect tax revenue specifically, provides an avenue for further tax revenue optimization for these countries. Therefore, the study calls for optimization of both tax revenues for adequate mobilization of government revenue; and also suggests that government revenue should be properly channeled to boost the economy and overall welfare of the people as this will promote fiscal responsibility and discipline among the people of this region.