Optimising Tax Revenue for Economic Growth and Development in Nigeria
The study examined optimisation of tax revenue for economic growth and development in Nigeria using Federal Inland Revenue Service (FIRS) as a case study. Primary data were obtained from 235 copies of questionnaire administered on the staff of FIRS. Secondary data on revenue collection performance from 2012 to 2021 were analysed and compared with real Gross Domestic Product (GDP) statistics for the periods. Hypotheses were tested using regression and correlation statistics. Analysis of Variance (ANOVA) was also used to determine the contribution of both oil and non-oil revenue to the real GDP. The results from the study suggest that structure of tax system and actions of tax officials enhance optimum tax collection. Well implemented tax policies and judicious utilization of tax revenue will encourage voluntary tax compliance. Result of the correlation also indicates that there exists positive significant relationship among Petroleum Profits Tax (PPT) (r = .740*, p (0.014) < 0.05), non-oil tax revenue (r = .995**, p (0.000) <0.01) and Real GDP. The result of the study suggests that optimisation of taxes will break the trend of mono-economy and overreliance on oil. The study recommends amongst others that the existing tax structure should be improved upon, well implemented and incorporating contributions from all relevant stakeholders; and that the existing tax laws should be reviewed into easy-to-read version that eliminates all complexities and ambiguities.
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