TAX AS A STIMULUS FOR GROWTH AND DEVELOPMENT IN NIGERIA
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ABSTRACT
Taxation and its product, Tax have been very important vehicles for economic policies of many countries of the world. For a very long time, tax has been a major source of revenue for various levels of governments. For instance, in Nigeria, the laws of the land stipulate the categories of taxes that are collectable by each of the three tiers of government. This is with a view to enhancing basic economic growth and development at all levels of government. However, the use to which taxes are put is a major concern to the majority of Nigerians.
This paper examines the major taxes accruing to various governments in Nigeria as reported by the Federal Inland Revenue Service (FIRS). The study adopted the use of secondary data as the major data collection method. Thus, the author relies on data obtained from the Federal Inland Revenue Service report for the analysis of the various revenues accruing to Nigeria. Also, various books, journals and government publications were used extensively for the analysis. Reported opinions of Nigerians on the application of these revenues for developmental activities were also reviewed. The analysis of the taxes collected from 1995 to 2004 suggests that government has not really lived up to its responsibilities in terms of the provision of basic social amenities and other infrastructures necessary for the growth and development of a nation. The study therefore, suggests some recommendations, which if accepted and embraced could enhance a better economic growth and development in Nigeria.
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