TAX REVENUE AND SUSTAINABLE DEVELOPMENT IN NIGERIA

Abstract

The study investigates tax revenue and Sustainable development in Nigeria. The objectives of the study is to determine the effect of (CIT), (PIT) and (VAT) Customs and Excise Duties (CED) on Sustainable development in Nigeria. In analyzing the relationship that exists between tax components and sustainable development in Nigeria. In examining tax components and sustainable development in
Nigeria, the study made use of a 2- stage econometric procedure. First, the Augmented Dickey-Fuller (ADF) test was undertaken to ascertain the order of integration of the variables, then the Auto Regressive Distributed Lag (ARDL) model was employed to account for a long-run and short-run relationship in the model. The study uses the descriptive statistical approach of central tendencies and
dispersion such as mean, standard deviation, minimum and maximum value to organize, summarise and present the data in an informative way to capture the behaviour of the variables. The Result indicated that Petroleum profit tax, Company Income tax and value added had a positive relationship with Real Gross Domestic product both in the short run and long run. There is a significant effect of (CIT), (PIT) and (VAT) Customs and Excise Duties (CED) on Sustainable development in Nigeria and was recommended that : Tax authorities should establish a good relationship with the professional associations involved in tax matters to reduce tax malpractices perpetrated by taxpayers with the connivance and often active support of external auditors and tax consultants. In other to support the cashless economy currently operating in Nigeria and proper accountability, the tax base in Nigeria should be as broad as possible since this can minimise tax distortions and revenue losses. In particular, attention should be carefully given to taxes on production since the study shows that only (CIT), (PIT) and (VAT) has positive impacts on economic growth in Nigeria.