ABSTRACT

The research was conduct for the purpose of ascertaining the impact of tax incentives on economic and industrial development with a study of Abia State. In the course of this research, a careful investigation piocoss Was employed. Primary and secondary data (s) were used. The instruments used in this study especially the questionnaires were validated by the researcher. The questionnaire were carefully designed ■ and administered to relevant bodies. The hypotheses were tested using the chi-squared statistical techniques and the result of the test of the hypothesis was interpreted resulting to the findings that: tax incentives are inadequate for economic and industrial development, tax incentives do not satisfactorily attract foreign investment etc. The following recommendations advances are: that tax incentive legislation should shift emphasis from capital accumulation to the utilization of local input, (raw materials, labour and local made simple machinery) as against imported ones for simple ability, policies regarding tax incentives should be made effective, tax' incentives should ■ • .. i therefore be concentrated on industrial capable of generating forward and backward linkages in order to increase the rate on all investment in the economy, tax incentives should be geared at encouraging the training of indigenous labour to acquire the necessary technical know how in order to the able to save huge sum paid to foreign expert. It is therefore believed that if these findings and recommendations are adhered to and well implemented, there will be a considerable improvement in economic and industrial development of Abia State.