ABSTRACT

This research is on the evaluation of the taxation to Government Revenue in Abia State between 2002 — 2008. The need for government in the affairs of man is the basis for taxation. For a Government to superintend human affairs in a given territory, that government will need human and material resources to do its work which is provision of the social or basic amenities of life. (Good Roads, Hospitals, Schools, Electricity, Pipe borne water etc). The most efficient way of getting such resources is for the individuals in that territory concerned to contribute in an agreed manner some assistance. Such contribution is known as tax and the whole activities culminating in the collection of the contribution is taxation. The research study seeks to find out the extent of tax revenue collection to the to total Government revenue in Abia State. The study has the objective of discerning how much the tax revenue collection has contributed to the overall Government revenue in Abia State. government at various levels have experienced declining revenue leading to poor implementation of budgets. To still maintain essential functions of government internally generated revenue has been adopted as a veritable stop gap to fill the vacuum created by reduction in shares of federation Account. To achieve the objective of the study, three hypothesis were formulated in the research methodology, data used are from primary and secondary sources. The simple regression analysis is the tool used in data analysis and testing of hypothesis. It was found that tax revenue has contributed significantly to Government Revenue in Abia State. however, empirical finding further revealed significant relationship between tax revenue and socio economic development in Abia State. Also, tax Revenue showed a significant relationship with the overall government revenue in Abia State within the period under review. The findings are that the contribution of tax revenue as a major source of revenue in Abia State are inadequately managed. The attitude of taxable adults in Abia State in paying their taxes is not encouraging. The tax collection machinery ie zonal tax offices is weak some members of the staff of Abia State zonal tax office are not sincere and diligent in rendering services to tax payers and individuals even to students that may need vital information for research purposes. Based on the findings, it was recommended that proper training be given to zonal tax offices staff, Abia State government should adequately manage the proportion of tax revenue generated by reviving public utilities board, providing good roads and other basic amenities of the citizens.