For correspondence:-
Received: 23 January, 2019 Accepted: 15 March, 2019 Published: 31 Marcch 2019
Citation: Taxation and Revenue Generation in Nigeria. Account Tax Rev 2004; 3(1):82-92 doi:
© 2004 The authors.
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Abstract
This study examined the effects of taxation on revenue generation in Nigeria. It also analysed the direction of causality between taxation and revenue generation utilizing method of Johansen co-integration and the Granger causality tests using secondary data spanning the period 1970 to 2017. Results showed that PPT has positive significant effect on REV.VAT, CORPT and CUSEXC also had positive significant effect on REV. But CUSEXC has the lowest significant effect on REV both in the short run and in the long run. All the components of taxation showed bidirectional causality with government revenue in Nigeria because PPT, VAT, CORPT and CUSEXC, jointly, Granger-cause REV. It is concluded that taxation had positive significant impact on revenue generation of government both in the short run and in the long run. It is now recommended that the regulatory authorities charged with the responsibility and accountability of collecting tax should further be supported and empowered by government to impose compliance on taxpayers, and bring tax evasion and avoidance into tax net so as to generate more revenue for the government to implement its fiscal responsibilities.
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