Analysis Of The Investment Implications Of Tax Incentives In Nigeria

ABSTRACT

This research study was designed to ascertain the effect of tax incentives on investors and government revenue. The study also shows respondents opinion whether tax incentives is the major factor influencing decisions to invest. For the research, a random sample of seventy-eight (78) respondents comprising of private entrepreneurs, tax administratois and auditors were examined for their opinions. Structured questionnaire with likert scale options was administered to the respondents. Data collected were analyzed using descriptive statistics like frequency and simple percentages. The hypotheses were the opinion of the respondents as to the effect of tax incentives on their investments and on government ievenue. These were analyzed using the chi-square. At the end of the analysis, the responses of the respondents were that tax incentives affect their investment decisions positively and secondly, it reduces government reeled. Their responses also show that a tax incentive is not a major factor influencing investment decisions. The researcher recommended for the government not only to revise and implement their tax policies, incentives included, but also improve their human and capital infrastructure since these rank higher than incentives when investors consider investing in a place especially on longterm basis.