THE IMPACT OF TAXATION POLICIES ON THE PERFORMANCE OF THE BANKING SECTOR IN FCT ABUJA
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Abstract
Banks play a very important role in development of the Nigerian economy. The Banking sector's importance in the economic development of any country in recent years cannot be underrated especially with regard to creation of employment, innovation, uplifting the people’s standard of living and financial contribution to the growth of the country’s GDP. The study looked at the impact of tax influence on banking sector growth in Nigeria. The study employed descriptive design. Primary data was collected on valuables contributing to tax influence and their effect of the performance of commercial banks. A total of 50 respondents were considered out of the entire population in the FCT abuja. The study found that there was a significant correlation between taxation and Performance of commercial banks. The study recommends that there be a friendly tax policy for all start up businesses preferably a tax holiday, or an introduction of a growth limit which can be said to be a level stable enough to sustain tax payment. It also recommends that, nigerian tax authority; should supply tax assessment forms in time, intensify on the sensitization different tax rates and introduce a scheme that allows taxpayers to pay the tax obligation in installment to better the profitability of commercial banks. There is therefore need for more research on firms‟ management techniques, the role of bookkeeping and profitability of commercial banks.
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