ProjectClue.com We're Ready, Call Us

(+234) 07030248044

Project Topic:

TAXATION AND ECONOMIC GROWTH IN NIGERIA: AN EMPIRICAL ANALYSIS

Project Information:

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 75 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   281 people found this useful

Project Department:

TAXATION UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND TO THE STUDY
One of the most commonly discussed issues in economics is on how taxes as means of fiscal policy at stabilizing the general economy relate to economic growth of developing countries such as Nigeria. A lot of studies have tend to yield an audience of the relationship between taxation and economic. Some of the studies have rather yielded results that have established negative effects of taxes on economic growth. Taxes as means of fiscal policy raises the cost or lower the return to the taxed activity (Juliana, Mustaffa and Zulkifli, 2012).
Income taxes create a disincentive to earning taxable income. Individuals and firm have an incentive to engage in activities that minimize their tax burden. As they substitute activities that are taxes at a cover rate for activities taxed at a higher rate, individuals and firms will engage in less productive activity, leading to lower rates of economic growth (Juliana Mustaffa and Zlukifli, 2012).
Economic growth is the basis of increased prosperity. Investments in new capital such as (human and physical) the implementation of new production techniques and the introduction of new products are the fundamentals of the growth process. Though its effect on the return to investment or the expected profitability of research and development, taxation can affect what choices are made and ultimately the rate of growth. Taxation is necessary simply because it would neither be feasible nor desirable to finance government solely by charges on services (Mwima-Swaya, 1995).
Basically, taxation refers to a system used by the government through levying assessments to obtain money from people, industries and organizations. It is not only relatively paramount but also compulsory and does not guarantee a direct relationship between the amount contributed by a citizen and the extent of government services provided to him/her. A tax is an involuntary fee paid by individuals or business to the government for the sole purpose of answering resources to society and economically beneficial use, to stabilize the economy and to redistribute wealth between the rich and the poor (Mwima-Swaya, 1995).
Moreover, the relationship between taxation and economic growth has of recent times become one of the most important economic issues. This is particularly due to the poor fiscal performance in a number of developing countries such as Nigeria. The relationship to a large extent empirical and forces one to employ methods of scientific investigation that do not yield aprioristic conclusions and external truths, but only statements of validity limited by the character of the model used or by significance of evidence provided (Dalibor, 2005).
While it could be clear that taxation might affect the level of GDP, Early growth models presumed that the langram growth depends on exogenons technical change such that it may be hard to access the effect of fiscal policy on the rate of capital accumulation or more generally, Economic activity (Myles, 2000). Some prior studies established a positive linkage between taxation and economic growth; others have however submitted mixed findings.
It is against this backdrop, this study is under taken to evaluate the impact of taxation on the Economic growth of Nigeria with specific attention on direct taxation such as PPT, CIT and Tax

1.2 STATEMENT OF THE RESEARCH PROBLEM
The achievement of Macro Economic objective of full employment, stability of price level, high and sustainable Economic growth from time immemorial has been a policy priority of every economy such as Nigeria given the susceptibility variables to fluctuations in the economy. The achievement of this very goal is influenced by the employment of fiscal policy instrument such as taxation.  A lot of revenues derived by the Nigerian government through taxation has not yielded economic growth and full employment stability (Chigbu, Akujuobi and Ebunohowei, 2002).
In the light of the above existing gaps, the following specific research questions are raised:
Does petroleum profit tax enhance the economic growth of Nigeria?
What is the relationship between economic growth and the company income tax in Nigeria?
Is there a relationship between value added tax and the growth of the Nigeria economy?
What is the relationship between personal income tax and economic growth?

1.3       OBJECTIVES OF THE STUDY
The general objective is to examine the impact of taxation on the growth of the Nigerian economy.  But the specific objectives are as follows:
To examine how petroleum profit tax contribute to the economic growth of Nigeria.
To find out the relationship between company income tax and the Nigerian economic growth.
To ascertain if there is a significant linear relationship between value added tax and the economic growth of Nigeria.
To ascertain the relationship between company income tax and economic growth.

1.4       RESEARCH HYPOTHESES
The research hypotheses to establish the relationship between taxation and the economic growth of Nigeria are put in an alternative form as follows:
Ho:  No significant relationship between petroleum profit tax and economic growth.
Ho:  No significant relationship between company income tax and economic growth.
Ho:  No significant relationship between value added tax and economic growth.
Ho:  No significant relationship between personal income tax and economic growth.

1.5       SCOPE OF THE STUDY
This study examined the impact of taxation on the economic growth of Nigeria.  This study covers the time between 1995-2011. In terms of the samples size, such taxes as petroleum profit tax, company income tax, value added tax and personal income tax are critically examined under this study within the Nigeria economy with a geographical bias or restriction.

1.6       SIGNIFICANCE OF THE STUDY
Researchers on the impact of revenue from taxation collected by the Nigerian government in the economy have been on going. In this regard, it is necessary to state the usefulness of this study in light of the present day Nigerian economy.
Firstly, the Federal Government of Nigeria will find this study useful in terms of policy formulation especially fiscally policy to help achieve stability of the economy. It will further guide them to know the extents with which these varying forms of tax revenue have contributed to the economic growth of Nigeria and how to sustain it.

1.7       LIMITATIONS OF THE STUDY
There are still scanty literature reviews on the impact of taxation over the Nigerian economy. Most of the study done thus far on taxation and economic growth has mainly been peculiar to advanced countries of the world.
Data serve as another limitation of the study. Most times, the accuracy and reliability of the data extracted from the secondary source are unreliable, such that the outcome of this study might be very valid and the problem of generalizing the outcome of the study.

Get the complete project »

Instant Share On Social Media:

OTHER SIMILAR TAXATION PROJECTS AND MATERIALS

PROBLEMS OF TAX COLLECTION IN NIGERIA, A CASE STUDY OF UYO LGA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 54 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1695 engagements

CHAPTER ONE INTRODUCTION 1.1 Background of the Study One of the recurrent problems of the three-tier system in Nigeria, a case study of Uyo LGA is dwindling revenue generation as characterized by a...Continue reading »

TAXATION AS A MAJOR SOURCE OF GOVERNMENT FUNDING

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 103 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   2007 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY Taxation is a major instrument for the conduct of public policy. This is true for both developed and developing countries. Taxation is known to a...Continue reading »

THE EFFECT OF TAXATION ON BUSINESS DECISION (A CASE STUDY OF GUINNESS BREWERIES, ONITSHA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 102 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1132 engagements

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY The two primary objectives of every business are profitability and solvency. Profitability is the ability of a business to make profit, while so...Continue reading »

TAX AS A STIMULUS FOR GROWTH AND DEVELOPMENT IN NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 30 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1871 engagements

CHAPTER ONE INTRODUCTION Responsible governments all over the world, be it at the Federal, State or Local government level, are concerned with the provision of social goods and services for their ci...Continue reading »

TAX AS A STIMULUS FOR GROWTH AND DEVELOPMENT IN NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 30 ::   Attributes: Questionnaire, Data Analysis,Abstract

CHAPTER ONE INTRODUCTION Responsible governments all over the world, be it at the Federal, State or Local government level, are concerned with the provision of social goods and services for their ci...Continue reading »

THE IMPACT OF TAXATION ON NIGERIA ECONOMY GROWTH

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 144 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1403 engagements

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 ...Continue reading »

What are looking for today?

WHAT OUR CUSTOMERS ARE SAYING:
  • 1. Taleeb from Kwara state polytechnic said "I like all topics on this website but anytime i wrote topic to my project supervisor he used to ask where is the case study and case study is not written there . thanks ................".
    Rating: Very Good
  • 2. Donald from ui said "i thank you guys for the good work...i never believe that there are still some Nigerians that are trustworthy until i stumbled upon projectclue. excellent job. great write up. weldone Glory keep up the good job. nice voice.,...i will always recommend projectclue to any Nigerian researchers...God bless.".
    Rating: Very Good
  • 3. Abdoulrasheed Tapheeda from Taraba State University,Jalingo said "The Project Clue owe me a Tribute Respect, because of the nature of their work and delivery system. I recommend this site for any undergraduate due to the quality and fast delivery system of their work. Thanks".
    Rating: Excellent
  • 4. Sam Seyil from Federal Uni Agric. Markudi said "I had a wonderful experience using ProjectClue, they delivered not only on time, but the content had good quality. I recommend ProjectClue for any project research work.".
    Rating: Excellent
  • 5. Eval, Effa A. from University of Calabar (Unical) said "It was a wonderful experience using projectClue, it really helped me in carrying out a Term paper research NGP.".
    Rating: Good
  • 6. Abimbola Bisola from Obafemi Awolowo University said "Thanks a million times for giving me a quality research project. not only have i defended i was commended by my supervisor. You guys are the best; Project clue".
    Rating: Very Good

Leave a comment: