Impact Of Direct Tax On Economic Growth In Nigeria:- Onum Emeka N

ABSTRACT ! X j i 0.0001%, Petroleum profit tax was also positively relating to real gross domestic product, a unit increase in Petroleum profit tax will lead to 0.004452 increases in the real gross domesticproduct over time with a probability value of0.0157% which is significant at 0.05% statistical criterion. the study therefore recommends that; the government through the monetary authorities in the nation, should enactfiscalpolicies that will enable individualpay taxes as they earn, andformalize the tax collection process in other to avoid tax invasion and there should be a working mechanism in place, that will ensure oil companies in the nation pay the appropriate tax rate due unto them Impact of direct tax on economic growth Nigeria was carried out for a period ofthirty seven years(1981-2018,) while imploring econometric tools such as; augmented dickey fuller test of stationarity, johanson test of coinlegration to ascertain if there is a long run equilibrium relationship amongst the series and error correction model. Real gross domestic product was regressed against personal income tax (PIT), petroleum profit tax(PPT) and company income tax(ClT)for the period under review. The objectives ofthe study were to: determine the impact of corporate income tax revenue on the economic growth ofNigeria, ascertain the impact of personal income tax revenue on the economic growth ofNigeria and Investigate ifthere is a sustainable long run relationship between direct tax and economic growth in Nigeria, the results indicated that; a one percent increase in personal income tax will result to a 0.591670 increase in the real gross domestic product during the time ofthis study and the result was significant a