This study examined the impact of tax revenues
and tax policy reforms on economic growth of Nigeria. The specific objectives
were to evaluate the impact oftax revenues on gross domestic product and gross
federally collected revenue and as well assess the impact oftax policy reforms
on gross domestic product and federally collected revenue of Nigeria. Time
series data from 1970 - 2015 were collected from various issues of Central Bank
of Nigeria Statistical Bulletin, Federal Inland Revenue Services and National
Bureau of Statistics. The Data Collected were on Value Added Tax, Company
Income Tax, Petroleum Profit Tax, Custom and Excise Duties, and Personal Income
Tax including Gross Domestic Product, Gross Federally Collected Revenue and
dummy variable was used to proxy Tax Policy Reforms in the varioustaxes used.
The Augmented Dickey Fuller (ADF), Auto Regressive Distributed Lag (ARDL) and
Vector Error Correction Model (VECM) were used to test for stationarity of
data, and for long and short run equilibrium relationship of the variables
respectively. The result ofthe study indicated that all the individual tax
revenues components and tax policy reform were significant and positively
signed meaning that an increase in these variables will result to a
corresponding increase in revenue generation and economic growth of Nigeria.
Despite the existence of a positive relationship between the dependent and the
explanatory variables used, it was however discovered that tax policy reform
could only account for 35% and 27.5% ofthe changes in gross domestic product
and gross federally collected revenue respectively. The study therefore
recommends among others that government should trained more tax officials that
are adequately remunerated, wellmotivated, properly organized, better equipped
and disciplined as these will help to sustain and even improve the tax revenues
toward economic growth. Besides, many tax reforms have been carried out in the
past with unsustainable outcome due to the ad-hoc basis of the reforms coupled
with policy summersault. Hence there is need for more robust, well-articulated
and planned tax reforms for a meaningful impact on the overall economic growth
of Nigeria. As a result of the preponderance of the informal sector which are
outside the tax net and twin menace of tax avoidance and evasion the study also
recommended the reduction of company income tax from 30% to 20%, personal
income tax from 25% to 17.5% and value added tax from 5% to 15%. This should be
passed into law and vigorously pursued by the tax authorities so as capture the
informal sector thereby enhancing economic growth via revenue generation.
EKE, E (2023). Impact Of Tax Revenues And Tax Policy Reforms On Economic Growth Of Nigeria:- Eke, Onyekachi A.. Repository.mouau.edu.ng: Retrieved Feb 27, 2024, from https://repository.mouau.edu.ng/work/view/impact-of-tax-revenues-and-tax-policy-reforms-on-economic-growth-of-nigeria-eke-onyekachi-a-7-2
EKE, EKE. "Impact Of Tax Revenues And Tax Policy Reforms On Economic Growth Of Nigeria:- Eke, Onyekachi A." Repository.mouau.edu.ng. Repository.mouau.edu.ng, 23 Nov. 2023, https://repository.mouau.edu.ng/work/view/impact-of-tax-revenues-and-tax-policy-reforms-on-economic-growth-of-nigeria-eke-onyekachi-a-7-2. Accessed 27 Feb. 2024.
EKE, EKE. "Impact Of Tax Revenues And Tax Policy Reforms On Economic Growth Of Nigeria:- Eke, Onyekachi A.". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 23 Nov. 2023. Web. 27 Feb. 2024. < https://repository.mouau.edu.ng/work/view/impact-of-tax-revenues-and-tax-policy-reforms-on-economic-growth-of-nigeria-eke-onyekachi-a-7-2 >.
EKE, EKE. "Impact Of Tax Revenues And Tax Policy Reforms On Economic Growth Of Nigeria:- Eke, Onyekachi A." Repository.mouau.edu.ng (2023). Accessed 27 Feb. 2024. https://repository.mouau.edu.ng/work/view/impact-of-tax-revenues-and-tax-policy-reforms-on-economic-growth-of-nigeria-eke-onyekachi-a-7-2