Background of the Study
Tax policy plays a critical role in the economic development of a nation, particularly in the context of poverty alleviation. In many developing countries, including Nigeria, tax revenues are essential for funding social programs, infrastructure development, and public services that directly impact poverty reduction. However, the effectiveness of tax policy in alleviating poverty depends on how well tax revenues are utilized and how equitably the tax burden is distributed across different segments of society.
In Nigeria, rural communities are particularly vulnerable to poverty due to limited access to education, healthcare, and infrastructure, as well as the challenges associated with agricultural dependence. The government has implemented various tax policies aimed at alleviating poverty, such as subsidies, agricultural tax exemptions, and social welfare programs. However, the distribution of tax benefits in rural areas remains uneven, and many rural residents are unaware of or unable to access these benefits due to bureaucratic hurdles, inefficiencies in public service delivery, or lack of financial literacy.
Ekiti State, located in southwestern Nigeria, is one of the states with significant rural populations. The state government has introduced several tax policies aimed at promoting rural development, including tax relief for smallholder farmers and incentives for rural-based businesses. However, the effectiveness of these policies in reducing poverty in rural communities has not been comprehensively studied.
This study examines the impact of tax policy on poverty alleviation in rural communities in Ekiti State, exploring how tax policies have been implemented and whether they have had a significant effect on reducing poverty levels in these areas.
Statement of the Problem
While tax policies have the potential to alleviate poverty by funding critical public services and stimulating economic activity, rural communities in Ekiti State continue to face persistent poverty despite the implementation of such policies. Challenges such as inadequate infrastructure, limited access to tax benefits, and inefficiencies in public service delivery have hindered the positive impact of tax policies on poverty reduction. The study aims to assess whether current tax policies are effectively addressing the needs of rural communities and contributing to poverty alleviation in the region.
Objectives of the Study
Research Questions
Research Hypotheses
Scope and Limitations of the Study
The study will focus on rural communities in Ekiti State, Nigeria, and will assess the impact of tax policies on poverty reduction in these areas. The period of focus will be from 2015 to 2025. Limitations include potential challenges in obtaining reliable data on tax policy implementation and poverty levels in rural areas, as well as the difficulty of isolating the direct effects of tax policy from other factors contributing to poverty.
Definitions of Terms
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Chapter One: Introduction
1.1 Background of the Study
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