Effect of Tax System on the Economic Development of a Nation: Nigeria Experience
DOI:
https://doi.org/10.53555/nnbma.v7i11.1068Keywords:
Economic development, Tax system, Human development index, Tax to gap ratio, Tax revenue.Abstract
The economic development of Nigeria has been trembling over the years, even when the country has been acclaimed the biggest economy in Africa since 2014. This is in contrast to other developing countries and sub-Saharan countries that have up-scaled and accelerated their economic development in contemporary times. Such nations have utilised tax revenue to galvanise their economic development, but Nigeria does not have much to show for this. The country records one of the lowest percentage of tax revenue to GDP of about 6% compared to an average of 17% for sub-Saharan African countries and about 30% for OECD countries. This study examined the effect of the tax system on the economic development of the nation, using the human development index as the parameter for measuring economic development while assessing the tax system by the tax to GDP ratio. A qualitative research method was adopted by reviewing empirical studies and analysing secondary data gathered from relevant sources. From the reviews, discussions and analysis, there abounds compelling data to show that there is significant positive relationship between the tax system and the economic development of a nation. However, in the case of Nigeria, there appears to be uncoordinated and ineffective tax system that has inadequately impacted on her economic development. Taking a lead from other developing countries like Rwanda, recommendations were made for restructuring and synergising the tax system while utilizing information technology and ensuring accountability and transparency.
References
Abata, M. A. (2017). The impact of tax revenue on Nigerian economy (Case of Federal Board of Inland Revenue). Journal of Policy and Development Studies Vol. 9, No. 1 November 2014 ISSN: 157-9385Website: www.arabianjbmr.com/JPDS_index.php
Adudu S. A & Ojonye M. S., (2015). The impact of tax policy on economic growth in Nigeria. Retrieved from: https://www.iiste.org/Journals/index.php/JEDS/article/view/21913
Agarwal P. (2019). Economic Development. Intelligent Economist Journal. Retrieved from: https://www.intelligenteconomist.com/economic-development/
Aghion P. & Howitt P. (1998). Endogenous economic growth theory. Retrieved from: https://mitpress.mit.edu/books/endogenous-growth-theory
Brookings (2015). Are African countries rebasing GDP in 2014 finding evidence of-structural transformation? Retrieved from: https://www.google.com/search?q=Brookings+(2015).+Are-African-CountriesRebasing-GDP-In-2014-Finding-Evidence-Of-Structural-Transformation
Corporate Finance Institute, (2019). Economic growth theory. Retrieved from: https://corporatefinanceinstitute.com/resources/knowledge/economics/endogenous-growth-theory/
Denver-South, (2018). What is Economic Development? Retrieved from: https://denver-south.com/what-iseconomic-development?/
Ehigiamusoe U., (2014)The Nexus between tax structure and economic growth in Nigeria: A prognosis. Article in Journal of Economic and Social Studies · January 2014 DOI: 10.14706/JECOSS11417
European Union, (2000). Economic growth in the European Union. Tourism and Management Studies International Conference Algarne Vol.3
Ewa U., Adesola W, & Essien E (2020). Impact of tax revenue on economic development in Nigeria. International Business Research; Vol. 13, No. 6; ISSN 1913-9004 E-ISSN 1913-9012
FIRS, (2019). Retrieved from: https://www.firs.gov.ng/TaxLaws)
FIRS, (2020). Tax/Statistics Report. Retrieved from: https://www.firs.gov.ng/TaxLaws) Ibanichuka, E. L., Ikebujo, O.S. & Akani, F. N. (2016). A time series analysis of effect of tax revenue on economic development of Nigeria. International Journal of Innovative Finance and Economics
Research, 4(3), 16-23.
ICAN, (2009). Retrieved From: https://www.icanig.org/students/documents/PATHFINDER_MAY-2009-Professional.pdf.
Macek R. (2015). The impact of taxation on economic growth: Case study of OECD countries. Mayor Vihar Phase 1, Delhi. Management. Vol 6 No 2. Pp 128 – 136.
Maiye O. & Isiadinso (2019) Nigeria’s unchanging tax to GDP ratio. Anderson. Retrieved from: https://www.mondaq.com/nigeria/tax-authorities/760270/nigeria39s-unchanging-tax-to-GDP-ratio
Nzotta, S.M. (2007). Tax evasion problems in Nigeria: A critique, The Nigerian Accountant, 40(2): 40-43.
OECD, (2018). Report to G-20 Finance Ministers and Central Bank Governors, Tax policies for inclusive growth in a changing world https://www.google.com/search?q=Revenue+Statistics+in+Africa+2020+%E2%94%80+Nigeria
Ofoegbu, G. N., Akwu, D. O. & Oliver, O. (2016). Empirical analysis of effect of tax revenue on economic development of Nigeria. International Journal of Asian Social Science, 6(10), 604-613.
Ogbonna G & Odoemelam N., (2015). Impact of Taxation on Economic Development of Nigeria 2000-2013
Ogbonna, G.N. & Appah, E. (2016). Effect of Tax Administration and Revenue on Economic Growth in Nigeria. Research Journal of Finance and Accounting.ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online).Vol.7, No.13, 2016
Okwara, C. C. & Amori , O. M. (2014). Impact of tax revenue on economic growth in Nigeria. International Journal of Scientific Research in Social Sciences & Management Studies | IJSRSSMS ISSN Print: 2579-101X | ISSN Online: 2579-1928 | Vol. 2, No. 2
Pantamee A.A. & Mansor M.B. (2016) A Modernize Tax Administration Model for Revenue Generation. International Journal of Economics and Financial Issues, 2016,
Sharhoodi S.M.M. (2010). Investigation of the effective factors in the efficiency of tax system
Solow, R.M. Swan, T.W. (1956) Economic growth and capital accumulation. Economic Record, 32, 334-361. Retrieve from: https://doi.org/10.1111/j.1475-4932.1956.tb00434.x
Tosun, M.S. & Abizadeh S. (2005): Economic growth and tax components: an analysis of tax changes in OECD. Journal of Applied Economics. Vol 37 pp 22251 - 2263.
World Bank (2019). Report on Nigeria. Retrieved from: https://Www.Worldbank.Org/En/Country/Nigeria/Overview
Yusuf, K. (2017). Africa turns to tax reform. Retrieved from: https://www.accaglobal.com/my/en/member/member/accounting-business/2017/01/insights/africatax.html
Downloads
Published
Issue
Section
License
Copyright (c) 2021 Journal of Advance Research in Business Management and Accounting (ISSN: 2456-3544)
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Terms & Condition
Submission -
Author can submit the manuscript through our online submission process or email us at the designated email id in contact details.
The other mode of submission not accepted than online and email.
Before submission please read the submission guidelines.
NN Publication accepts only article submitted in pdf/doc/docx/rtf file format. Another format except given file formats will no be considered .
Author will be responsible for the error mistakes in the submission files. The minor changes can be done without any cost after publication. But for major changes NN Publication may charges you the editing charges.
Publication (Online) -
The online publication is scheduled on last date of every month, but it can be delayed by 24 to 48 hours due to editorial process if huge number of articles comes to publish in single issue.
Automatic notification email will be sent to the all users on publication of an issue, so its author’s duty to check their email inbox or SPAM folder to get this notification.
After publication of article author can not withdraw their article.
If editor’s found any issue after publication of article then the NN Publication have the authority to remove the article from online website.
No refund will be provided after online publication of article.
Publication (Print) -
The print copy publication are sent as per the author’s request after 2 weeks of online publication of that issue.
NN Publication will ship the article by India Post and provide the consignment number on dispatch of print copy.
NN Publication follows all the guidelines of delivery provided by India Post and hence not responsible for delay in delivery due to any kind of reasons.
Refund of hard copy will not be provided after dispatch or print of the journal.
NN Publication will be responsible for raise a complain if there is any issue occurs in delivery, but still will not be responsible for providing the refund.
NN Publication will be responsible to resend the print copy only and only if the print copy is lost or print copy is damaged in delivery / or there is delay more than 6 months.
According to India Post the delivery should be completed with in 1-3 weeks after dispatch of articles.
Privacy Policy-
NN Publication uses the email ids of authors and editors and readers for sending editorial or publication notification only, we do not reveal or sell the email ids to any other website or company.
