THE RELATIVE IMPORTANCE OF CORPORATE TAX AND VALUE ADDED TAX (VAT) AND THEIR EFFECTS ON THE ECONOMIC GROWTH IN NIGERIA
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 5000
ABSTRACT
One of the most commonly discussed issues in Economics is how tax rates relate to economic growth. An effective tax system ought to satisfy the twin purposes of raising maximum revenue as well as encourage production. In light of this, the research examined the nexus between the Nigerian Tax System and economic growth using correlation method and Granger Causality to establish the relationship. it revealed that the tax system has no significant impact on growth because of the numerous challenges confronting the system. Further analysis of the components of the tax system shows that Custom Duties have more impact on economic growth than Company Income Tax, Value Added Tax and Petroleum Profit Tax. The paper also revealed a negative and insignificant relationship between Petroleum Profit Tax and Company Income Tax on the one hand, and between Petroleum Profit Tax and Value Added Tax on the other hand. Consequently, the paper recommended that the Nigerian tax system should be reformed so that it can have a significant impact on economic growth. Government should also embark on.
