ABSTRACT

This study deals with a review of the impact of tax incentives on profitability of manufacturing firm Tax is a mandatory levy made by the government of a place (ie) village town state or country. While tax incentive may be defined as a relief on favoured activity as against the currently imposed upon it. The aim of granting tax incentive or concession to individual corporate bodies and firms arose for the need to develop the industrial base of the economy. The following were the stated objectives. To determine the impact of tax incentives on the profitability of manufacturing firm, To Know the aim for granting the relief, The needs to increase or decrease these incentives to other sector of the economy to achieve the aim result. The project work in chapter two revealed the legislation and other articles that grant the incentives. The method for data collection is the questionnaires. This indirect method of data collection and the data collection interpreted for better understanding of the problem in chapter one. The date analysis or techniques which will be used in the process of carrying out the study are tabulated percentage and correlation coefficient, to test the hypothesis in conclusion the monetary budget is undetermined. As a result of this research, it was revealed that 45%of the firm and individuals studied were aware of the incentive and good number of them did not aware, this shows up to 70% in support. However, the researcher studied on what the government should do to regulate these incentive so as to achieve the aim of granting incentives in order not to waste resources.