EFFECT OF TAXATION ON ECONOMIC DEVELOPMENT IN NIGERIA

EFFECT OF TAXATION ON ECONOMIC DEVELOPMENT IN NIGERIA

ABSTRACT

The study looked into the impact of taxation in Edo State’s Ikpoba-Okha Local Government Area. The study’s objectives are as follows: To distinguish between the various types of taxes, To examine the revenue generated by the government through taxation between 2002 and 2005 in Edo State’s Ikpoba-Okha Local Government Area, To assess the impact of taxes on the state’s economic development from 2002 to 2005. To make recommendations for resolving some of the issues associated with tax collection. To emphasize the benefits that will be derived from tax revenue. The questionnaire was used to elicit information from the respondents in this study’s population. The study’s findings are as follows: effect on demand, effect on price level, and effect on employment. As a result of the discoveries.

TABLE OF MATERIALS

CHAPITRE ONE

The study’s context
The study’s thesis
The investigation’s goal
The study’s investigation
The significance of the research
The study’s scope and limitations
Term definitions
CHAPITRE TWO

Examine the relevant literature

CHAPITRE THREE

Methodology of the study

3.1 The study’s population

3.2 Samples and sampling methods

3.3 The Instrument

3.4 Instrument validation

3.5 Data analysis method

CHAPITRE FOUR

Data visualization and analysis

CHAPITRE FIVE

5.1 Findings Summary

5.2 Final Thoughts

5.3 Suggestions

REFERENCES

QUESTIONNAIRE

CHAPTER ONE

INTRODUCTION

BACKGROUND TO THE STUDY

Taxation is the money collected by the government from its citizens in order to generate funds to meet its expenditures. Taxes are imposed in order to achieve some of the nation’s economic goals. Despite accounting for a sizable portion of national income, taxes have historically been a source of political contention. The introduction of taxation in Nigeria was prompted by the country’s colonial administration’s financial needs. Custom duties are against direct taxes, which were first introduced in southern Nigeria. The northern territory was a convenient place to experiment with the system of direct taxation because the people of the area were used to paying taxes under the Fulani administration.

Edo state’s government area was established in the north in 1904.

Taxation was introduced in the western part of Nigeria following the union of northern and southern Nigeria in 1914. The Yoruba and Binis, who predominated in the area, already had a well-established taxation system. Taxes differ from other sources or forms of revenue in that they are compulsory levies and unrequired, that is, they are not paid in exchange for specific things such as the sale of public property or the issue of public debt, whereas taxes are most likely collected for the welfare of the tax payer regardless of any benefit received. They are a significant exception to this rule. Payroll taxes are frequently levied.

on labor income in order to fund retirement benefits, medical payments, and other social security programs.

Customs duties, excess duties, purchase tax, income tax, cooperation and proportional taxation, and fiscal policy are all part of taxation. This is done to generate revenue for the government’s endeavor. No nation can thrive without funds; taxation is one of the government’s primary sources of revenue; when a country’s national income is high, so is its per capita income or income per head. As a result, individuals and citizens in such a country will have a higher standard of living. This has the potential to lead to economic growth and development. The direct and immediate effect of direct taxation is a reduction in the income of the person being taxed. This

To put it another way, the higher the personal or corporate tax, the lower the retained income and, as a result, the lower the possibility of saving. Uniamakogbe (2006). (2006).

Taxation is critical to the economic development of Edo state and Nigeria as a whole. In the field of social infrastructure, such as school construction, electricity provision, road construction, and so on. Taxation has a negative impact on the economic development of Edo state and Nigeria in general because it reduces the purchasing power of the tax payer, leads to monopolies, and ultimately narrows the choice of goods in the economy.

1.2 STATEMENT OF PROBLEM

The term “income declaration” has been observed to be very common among self-employed citizens.

Because of widespread tax illiteracy, most citizens and government officials in Edo state’s Ikpoba-okha local government area are unaware of the importance of tax payment.

There are differing perspectives on the roles of taxation in economic development. This research attempts to investigate and its impact on development.

1.3 OBJECTIVE OF THE STUDY

The goal is to investigate the impact of taxation on the economic development of Edo state’s ikpoba-okha local government area.

To accomplish this, the following five specific goals are established:

To recognize the various types of taxes
To examine the revenue generated by the government through taxation from 2002 to 2005 in Edo State’s Ikpoba-Okha Local Government Area.
To assess the impact of taxes on the state’s economic development from 2002 to 2005.
To make recommendations for resolving some of the issues associated with tax collection.
To emphasize the benefits that will be derived from tax revenue.

1.4 RESEARCH QUESTIONS

The purpose of this study is to look into the effect of taxation on the economic development of Edo state’s ikpoba-okha local government area.

The following five specific goals are established to accomplish this:

Recognize the different types of taxes
To investigate the revenue generated by the government through taxation in Edo State’s Ikpoba-Okha Local Government Area from 2002 to 2005.
To assess the impact of taxes on economic development in the state from 2002 to 2005.
To make recommendations for resolving some of the tax collection issues.
To emphasize the advantages that will result from tax revenue.

1.5 SIGNIFICANCE OF THE STUDY

The study will provide information on how tax revenue is used for social amenities and road maintenance. Furthermore, relevance to government institutions, stakeholders, revenue bodies, and research institutions.

1.7 DEFINITION OF TERMS

Direct taxes are levied directly on an individual’s or a business’s income.

Indirect taxes are levied on both goods and services.

Customs taxes are levied on goods sold to other countries.

Fiscal policy is the use of government tax and spending policies to influence economic activity.

Progressive taxation is a type of compulsory taxation imposed on individuals based on their ability. P.A.Y.E. is an example (pay as you earn).

Does taxation promote development? Yes () No ( ).