The Impact of Tax Revenue on Nigerian Economy : Case of Federal Board of Inland Revenue

Matthew A. Abata

doi:10.12816/0011186

Article Details

The Impact of Tax Revenue on Nigerian Economy : Case of Federal Board of Inland Revenue

Authors:

Matthew A. Abata

Publisher:

Centre for Social Science Research

Main Topics:

Economics and Finance

Journal:

Journal of Policy and Development Studies 2014 Vol.9 Issue 1, pp.109-121

Document Type:

Article

Publication Date:

11/2014

Document Language:

English

Document ID (Org No.):

63617

Frequency:

Quarterly

pISSN:

15979385

DOI:

10.12816/0011186

Descriptors:

Keywords:

Abstract:

 In recent time, the impact of paying tax is not felt by payees in Nigeria and indeed has put themin doubt and confusion as to the use of the fund by the relevant government in the developmentof the economy. This uncalled for practices have definitely made some Nigerians want to avoidand evade tax. The study focused on the impact of tax revenue on Nigeria economy. Descriptivesurvey design was adopted and simple random sampling technique was used in the selection ofthe sample size. 100 copies of questionnaires were administered to workers of the Federal Boardof Inland Revenue (FBIR), Lagos, Nigeria. 75 questionnaires were retrieved and found usable forthe study hence, giving a 75% response rate. A pilot study was conducted and this gave areliability value of 0.78 which according to Nunnally (1978) is reliable enough to measure theresearch construct. Four Hypotheses were formulated and tested using Chi-square statistical toolof analysis. The findings show that tax revenue significantly impact on Federal GovernmentBudget implementation in Nigeria, Tax administrative system significantly affected the revenuegenerated in Nigeria, Tax evasion significantly affected government revenue in Nigeria, andLack of training on the part of tax officers significantly affected the generation of governmentrevenue in Nigeria. It was recommended that Notice of tax returns at the beginning of everyfinancial year should be supported with handbills and poster written in local languages such asYoruba, Hausa, Igbo and other languages as this will enable illiterates perform their civilresponsibilities; Tax payment should meet convenience of the tax-payers; an advance payment oftax should be encouraged and estimated by the tax-payer himself, based on the tax payable forthe previous year or on 80% of tax payable for the preceding year. The balance of tax is payablewhen the final assessment has been paid within one month of issue of the notice of assessment. Itfurther recommended that the state should set up its own revenue courts. The FederalGovernment has set that ball rolling by setting up a federal revenue court to look into cases oftax avoidance and evasion. The jurisdiction of these courts should be extended to states to ensureprompt prosecution of tax evaders.

Article Details

The Impact of Tax Revenue on Nigerian Economy : Case of Federal Board of Inland Revenue

Authors:

Matthew A. Abata

Publisher:

Centre for Social Science Research

Main Topics:

Economics and Finance

Journal:

Journal of Policy and Development Studies 2014 Vol.9 Issue 1, pp.109-121

Document Type:

Article

Publication Date:

11/2014

Document Language:

English

Document ID (Org No.):

63617

Frequency:

Quarterly

pISSN:

15979385

DOI:

10.12816/0011186

Descriptors:

ECONOMIC POLICY

TAXES

TAX REVENUES

PUBLIC REVENUES

TAX SYSTEMS

ECONOMIC ASPECTS

NIGERIA

Taxation

Revenue

Tax System

Development

Economy

Issues

Article Details

Authors: Matthew A. Abata

Publisher: Centre for Social Science Research

Main Topics: Economics and Finance

Journal: Journal of Policy and Development Studies 2014 Vol.9 Issue 1, pp.109-121

Document Type: Article

Publication Date: 11/2014

Document Language: English

Document ID (Org No.): 63617

Frequency: Quarterly

pISSN: 15979385

DOI: 10.12816/0011186

Descriptors:

Issues

Authors:

Matthew A. Abata

Publisher:

Centre for Social Science Research

Main Topics:

Economics and Finance

Journal:

Journal of Policy and Development Studies 2014 Vol.9 Issue 1, pp.109-121

Document Type:

Article

Publication Date:

11/2014

Document Language:

English

Document ID (Org No.):

63617

Frequency:

Quarterly

pISSN:

15979385

DOI:

10.12816/0011186