Tax Revenue and Economic Growth in Nigeria

Summary

The results of the regression analyses for the different attributes of tax revenue components and economic growth on the whole revealed a number of puzzling findings. The results of the study showed that of company income tax, that is, (CIT), Petroleum Profit Tax (PPT), Custom Excise Duties (CED) and Value Added Tax (VAT) exhibited a positive relationship with Economic Growth (GDP) in Nigeria. This implies that all the independent variables move in exactly the same direction with gross domestic product, which is a measure of economic growth. The positive relationship between the variables as revealed in the results of this study is in tandem with findings of Emeh and Appah (2013) as well as Apadore and Noor (2013). However, this is not consistent with the findings of Mohamad-Nor, Shafie and Wan-Hussin (2010) and Shukeri and Islam (2012) which revealed a negative relationship between the variables concerned. Nevertheless, only Petroleum Profit Tax (PPT) showed a positive significant association with economic growth in Nigeria.