Impact Of Personal Income Tax On Government Revenue Generation In Abia State. (A Case Study Of Board Of Internal Revenue Umuahia)

ABSTRACT

This study seeks to examine the impact of personal income tax on government revenue generation in Abia State taking the board of internal revenue Urnuahia as a study. Questions that arose include to what extent does pay as you earn (PAYE) significantly affects revenue generation in Abia State? To what extent does direct assessment tax (DAT) significantly affect revenue generation in Abia state? From these, hypotheses were drafted. To test the hypothesis, secondary data was used, this includes the personal income tax statement from the office of the state Accountant General. Simple regression statistical tool was used in analyzing the secondary data acquired. From the analysis, it was found out that PAYE does not have a significant effect on the revenue generation in Abia state. It was also discovered that DAT does not have a significant effect on revenue generation in Abia state. Based on the findings recommendations were made that government should set up a framework to enable them solve the problem of tax evasion self employed persons be encouraged to give accurate information regarding their tax payment and better incentives should be given to the SBIR.