Impact Of Taxation And Economic Growth In Nigeria 1996-2011:- Ariwodor Chibunna I

ABSTRACT

The theoretical literature postulates a strong link between taxation and economic growth. This study was undertaken to validate this hypothesized link between taxation and economic growth for the period 1996-2011. The empirical investigation was carried out using regression analyses and correlation analyses. The regression analysis showed that of the different tax components entered into the model as independent variables, company Income Tax and Value added tax had positive and statistically significant relationship with GDP, while petroleum profit tax, Education Tax, Personal Income Tax and custom and Excise Duty had relationship with GDP. It was recommended that the Nigerian Government should reform the tax collection management system, take a critical look at petroleum profit tax being declared by the oil companies enlighten citizen in the informal sector on the need to pay personal taxes and ensure efficient collection of education tax.