ABSTRACT

This research is on the effect of the contribution of Revenue Generation of personal income tax in Abia State. The main purpose was to know how personal income tax has contributed to the revenue of the State. The sources of data for the collection of primary and secondary data were used while the data collected were analyzed in tabular form using percentages to show the degree of responses, to test the hypotheses formulated, Chi-square statistic was used. The major findings of this research are: Incentives given to Board of Internal Revenue Staff is considered not to be enough: The State do not have a comprehensive list of taxable persons. It may not be easy to know those who are consistently paying or avoiding tax. The tax revenue from pay as you earn (PAYE) from the bulk of the State revenue from taxes. Costs incurred in collecting personal income tax do not outweigh the gains. The self employed persons posse the greatest resistance to the collection of personal income tax in Abia. On the basis of the finding, it was recommended that there is need to compile a comprehensive list of taxable persons to enable tax agencies know those who consistently avoid tax; The self employed should be encouraged to pay their taxes promptly and correctly, besides, tax offenders should be punished to serve as a deterrent to others. More incentives should be introduced for the staff of Board of Internal Revenue to motivate them further.