Effect Of Taxation On Economic Growth Of Nigeria (2002-2018):- Uche Tochukwu R

ABSTRACT

The study examined the examine the effect oftaxation on economic growth ofNigeria. The objectives ofthe study are; to evaluate the effect of company income tax on gross domestic product of Nigeria, to examine the effect ofpetroleum profit tax on gross domestic product ofNigeria, and to examine the effect of value added tax on gross domestic product ofNigeria. To achieve the objective ofthe study, ex-postfacto research design was adopted. The researcher adopted secondary data in getting the required information through Central Bank ofNigeria (CBN) Statistical Bulletin (various years), and internet and journal publications. In testing the hypotheses, the study employ the Ordinary Least Squares (OLS) technique in order to determine the impact oftaxation on gross domestic product (proxy for economic growth) ofNigeria. The findings revealed that value added tax has no significant effect on economic growthin Nigeria. The study recommends that 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 resourcesjrom 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 of taxation is enormous.