ATTENTION:
BEFORE YOU READ THE
PROJECT WORK, PLEASE READ THE INFORMATION BELOW. THANK YOU!
TO GET THE FULL
PROJECT FOR THE TOPIC BELOW PLEASE CALL:
08068231953,
08168759420
TO GET MORE PROJECT
TOPICS IN YOUR DEPARTMENT, PLEASE VISIT:
THE IMPACT OF
TAXATION ON NIGERIA ECONOMY
ABSTRACT
This research work was carried out in
order to find out if actually there is any impact which taxation has on
Nigerian economy and the survey for this study is based on Enugu state. This
research work also became necessary in order to bring to the proper understanding
of the enquirer the best way to solve such problems connected with tax
especially: what is taxable, which system of tax is acceptable, the rate of tax
evasion and tax avoidance, the assessment of Nigeria tax system and which of
the impacts of taxation is the most essential. The primary function of every
government is to make provision of this enormous work cannot be carried out
adequately by the government due to its limited resources therefore, there is
imposition of tax on all citizens, companies to augment government financial
position. Government have always enacted various tax laws and reformed to stand
the taste of time.
TABLE OF CONTENTS
CHAPTER
ONE
Introduction
1.1
Background of Study
1.2
Statement of the problem
1.3
Objective of the study
1.4
Research
Questions
1.5
Significance of the Study
1.6
Scope of the study
1.7
Limitations of the study
1.8
Assumptions of the study
1.9
Formulation of Hypothesis
1.10 Definition
of
Terms
References
CHAPTER TWO
Review of Related Literature
2.1 Introduction
2.2 Definition of
Taxation
2.3 Incidence of Taxation
2.4 Principles of Taxation
2.5 Elements of Taxation
2.6 The Importance of Taxation
2.7 Structure and administration
of Nigeria tax system
2.8 The problems of taxation and
its function
Reference
CHAPTER THREE
3.0 Design and Methodology
3.1 Primary Sources of Data
3.2 Secondary sources of Data
3.3 Population and Sample size
Determination
3.4 Method of Data Collection
3.6 Method of Data Analysis
CHAPTER FOUR
Data Presentation and Analysis
4.1 Presentation and Analysis
4.2 Summary of Findings/Results
4.3 Testing of
Hypothesis
4.3 Regression
Analysis
CHAPTER FIVE
DISCUSSION,
RECOMMENDATION AND CONCLUSION
5.1 Findings
5.3 Conclusion
5.3 Recommendations
5.4 Suggestion for further
findings
Bibliography
Appendix
CHAPTER
ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
One of the major
functions of the government especially developing countries such as Nigeria is
the provision of infrastructural services such as electricity, schools,
hospitals, pipe-borne water, good roads and as well as ensure a rise in
per-capital income, poverty alleviation to mention a
few.
For these services to be adequately provided, government should have enough
revenue to finance them. The task of financing these enormous responsibilities
is one of the major problems facing the government. Based on the limited
resources of government, there is need to carry the citizens (governed) along
hence the imposition of tax on all taxable individuals and
companies/organizations to augment government financial position is essential.
To this end,
government have always enacted various tax laws and reformed existing ones to
stand the taste of time. These laws include: Income Tax Management Act (ITMA),
Companies Income Tax Decree (CITD) etc.
All these are aimed
at ensuring adherence to tax payment and discouraging tax evasion and
avoidance. For the purpose of this study, the researchers would be concerned
with the impact of taxation on Nigeria economy.
1.2
STATEMENT OF THE PROBLEM
The first need of any
modern government is to generate enough revenue which is indeed “the breath of
its nostrils”. Thus, taxation is by far one the most significant source of
revenue for the government. Nigerians regard payment of tax as a means through
which government raises revenue on herself at the expense of their sweat.
It is good to note that no taxation
succeeds without the tax payers’ co-operation. Here, we can ask some thought –
provoking questions such as:
-
What makes taxation such a difficult issue?
-
Why do people feel cheated when it comes to tax?
-
Is government making judicious use of taxpayers’ money?
In view of the above questions, this
study is going to be carried out to offer solutions to them.
We shall also look at the following
issues and offer recommendations:
i.
Problems affecting the successful operation of tax system in Nigeria.
ii.
How to determine the assessable income.
iii.
Process of tax administration in Nigeria.
1.3 OBJECTIVES
OF THE STUDY
The general objective of the study is to assess the effect that taxation has
towards the development/growth of Nigerian economy.
However, the specific
objective of the study includes:
i.
To examine the extent government has been using revenue generated by tax.
ii.
To determine the reaction of people towards tax payment.
iii.
To find out if tax revenue is the most effective source of government revenue.
iv.
To examine how tax rate affects the rate of inflation, unemployment and Gross
National Product (GNP).
v.
To find out the most significant effect of taxation.
Generally, this work is done to find
out if tax constitutes the bulk of government revenue and to erase the
erroneous that it is an exploitation by government for their selfish interest.
1.4 RESEARCH
QUESTION
i.
To what extent has government been using tax generated revenue?
ii. How do people react towards tax
payment?
iii.
Is tax the most effective source of revenue to the government?
iv.
Does tax revenue have any significant impact on GDP, inflation and
unemployment?
v. Which of the effects of taxation
is the most significant?
1.5
SIGNIFICANCE OF THE STUDY
One of the most frequently discussed issues in Nigeria is how to solve the
economic hardship in the country and how to create an industrial base that can
guarantee self sustaining economic development. Also one wonders why a country
which is richly endowed with the necessary human and material resources and
which the people pay tax has been turned a heavily indebted
country.
The study will afford us the opportunity to:
i.
Know the roles taxation play in the Nigerian economy.
ii.
Ascertain how government has been using tax generated revenue.
iii.
The study will also reveal if there are other better sources of government
funding.
1.6 SCOPE OF
THE STUDY
The
scope of this study covers critical examinations on the impact of taxation on
Nigerian economy. It will also analyze other related issues such as structure and
administrative machinery of tax in Nigeria and their associated problems. The
essence of this digression is to possibly find out the obstacles if any, that
hinder the effective collection and administration of tax in the country.
The reference period for this study is 2000 – 2011. Inability of the researcher
to procure current data forced the researcher to utilize only available ones.
Data for this study were collected from Board of Internal Revenue and National
Bureau of Statistics, Enugu.
1.7 ASSUMPTIONS
OF THE STUDY
The researchers in carrying out this study, will make the following
assumptions:
i.
That the data that will be used are true and fair figures actually
collected by the Federal Government each year of assessment.
ii.
That the data will be authentic and can be relied on
for further research work on the topic.
iii.
That the data is going to form the basis of the research work.
1.8 FORMULATION
OF HYPOTHESIS
To
enable the researcher test if there is any impact taxation has on the Nigeria
Economy; some statistical model will be used based on the responses from oral
interview carried out and the questionnaires distributed and also statistical
data generated from the appropriate sources. The data generated from all these
will be used to test the following hypothetical statements:
Hypothesis 1:
The null hypothesis (Ho): Revenue
generated from tax does not make any positive impact on the economic
development of the nation.
The alternative hypothesis (H1):
Revenue generated from tax has a positive impact on the economic development of
the nation.
Hypothesis 2:
The null hypothesis (Ho): Taxation has
no significant impact on GDP, Inflation and Unemployment.
The alternative hypothesis (Ho):
Taxation has a significant impact on GDP, Inflation and Unemployment.
Hypothesis 3:
The null hypothesis (Ho): That revenue
generated from tax is so meager compared to revenue from other sources as such,
government can do without tax.
The alternative hypothesis (H1):
That is a major source of government revenue and as such government cannot do
without tax.
1.9 DEFINITION
OF TERMS
Tax:
A compulsory levy by the government on its citizens for the provision of public
goods and services.
Tax
Base: The object which is taxed for
instance personal income, company profit.
Tax
incidence: This is the effect and where the burden of
taxation
is finally rested.
FBIRS:
(Federal Board of Inland Revenue Services): It is an operational arm of Federal
Board of Inland Revenue which is responsible for the Federal Tax Matters.
CITA:
(Company Income Tax Act) It is a Federal Law operated by the FIRS, which deals
with the taxation of all limited liability companies in Nigeria with the
exception of those engaged in petroleum operations.
JTB:
(Joint Tax Board) Is established under section 85 (2) of Decree of 104 of 1993
to arbitrate on tax disputes between one state tax authority and another.
VAT:
(Value Added Tax) is a multistage tax levied and collected on transactions at
all stages of sales and distribution.
CGTA:
(Capital Gain Tax Act) is an act that stipulates that all capital gains arising
on disposal of assets of individuals, partnership and limited companies should
be taxed.
PPTA:
(Petroleum Profit Tax Act) is an act that regulates the petroleum profit
tax and also specifies how profit from petroleum will be taxed.
Withholding
Tax: This is tax charged on investment income namely: rents, interest,
royalties and dividends. Presently it is charged as the tax offset.
Progressive
Tax: This is a tax incidence that increases as the size of income increases.
Regressive
Tax: A tax is regressive when its tax rate decreases as the income increases.
Excise
Duties: They are taxes levied on some goods manufactured within a
country.
Persons:
It includes all taxable persons be it individual or corporate bodies.
AFFILIATE LINKS:
Comments
Post a Comment