Impact of Taxation on the Growth and Development of the Nigerian Economy (Published)
The continuous collapse of Nigerian economy due to incessant lack of finance in government covers calls for urgent attention of researchers, this study hereby examines the impact of taxation on the growth and development of the Nigerian economy. The specific objectives of this paper are to examine the extent to which petroleum profit tax affects gross domestic product in the Nigerian economy; ascertain the effect of capital gain tax on the gross domestic product in the Nigerian economy; and to determine the effect of company income tax on the gross domestic product in the Nigerian economy. To achieve these objectives, ex-post facto design was adopted, Ordinary least square (OLS) regression method was used for the study as the statistical method for analysing the data gathered. Result from this study reveals that CGT and PPT are insignificant in revenue generation towards the economic growth of Nigeria. CIT on the other hand is significantly effective on the economic growth of Nigeria. Based on the findings of this study, the researcher recommended that to boost economic growth in Nigeria, government should ensure the tax revenue generated from PPT and CGT be improved upon so that the revenue can be used in providing infrastructure for the citizens; government should use tax policy more as a macroeconomic policy not just as a tool for revenue generation as this will result to long run sustain economic growth and tax revenue.
Keywords: CGT, CIT, Nigerian Economy, PPT, Taxation, growth and development