Impact of Tax Revenue on Economic Growth in Nigeria (A Study of Abia State Board of Internal Revenue):- Ekeh Goodness M

ABSTRACT

The study examined the impact oftaxation revenue on economic growth in Nigeria. The objectives ofthe study are; to evaluate the effect ofcompany income tax on gross domesticproduct ofNigeria, to examine the effect ofpetroleumprofit tax on gross domesticproduct ofNigeria, and to examine the effect ofvalue added tax on gross domestic product ofNigeria. To achieve the objective ofthe study, ex-post facto research design was adopted. The researcher adopted secondary data in getting the required information through Central Bqnk of Nigeria (CBN) Statistical Bulletin (various years), and internet and journal publications. In testing the hypotheses, the study employed multiple regression technique ofanalysis technique in order to determine the impact of taxation revenue on gross domestic product (proxyfor economic growth) ofNigeria. Thefindings revealed that value added tax has no significant effect on economic growth in Nigeria. The study recommends that more attention should be devoted to how tax revenue from petroleum profit tax is remitted. Frugality, transparency and accountability should be the watchword when allocating resourcesfrom this tax revenue and economic growth. The study also recommends that tax revenue from Value added tax, company income tax appear not to be significant but these tax revenue can further be used efficiently for economic development and growth, the potentials inherent in this source oftaxation is enormous.