Federal Government Tax Revenue Sources and Gross Domestic Product in Nigeria
Keywords:
Taxation, Tax revenue, Gross domestic product, NigeriaAbstract
This study investigated the relationship between selected federal government tax revenue sources and the Gross Domestic Product (GDP) in Nigeria. Sources of federal government tax revenue are disagregated into company income tax, education tax, petroleum profit tax, value added tax and capital gains tax as independent variables and regreessed on the gross domestic product as dependent variable. Data obtained from Central Bank of Nigeria (CBN) Statistical Bulletin, Federal Inland Revenue Service Annual Accounts and Tax Statistics/Report covering 26 years from 1997 to 2022 were subjected to multiple regression based on Vector Autoregressive (VAR) technique. The results revealed that all the federal goernment tax revenue sources exhibited insignificant positive effects on GDP. The study concluded that federal government tax revenue has not supported sustainable development in Nigeria. The study advocated for government monitoring of expenditure and investment and formulation/mplementation of efficient tax policies that promote voluntary tax compliance among taxpayers along side computerize/digitalize tax administration process to check the incidence of tax evasion and avoidance., as varitable strategy to revitalised tax revenue sources as drivers of growth in NIgeria.
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