TAXATION POLICY AND ECONOMIC DEVELOPMENT IN NIGERIA: EDO STATE REFORMS INITIATIVE IN PERSPECTIVE

ABSTRACT

This study examined taxation policy and economic development in Nigeria: Edo State reforms initiative in perspective. The objective of the study was to investigate the contributions of a tax policy and how it impacts on the economic development of Edo State, to assess the extent to which personal income tax impacts on the economic viability and development of the State. In order to achieve the purpose of the study, four research questions were raised and answered. The study adopted survey research design. The instrument used for the collection of data was the questionnaire which was administered to a total number of 600 respondents and 587 was retrieved. The data collected was analyzed using simple percentage analytical method. The findings revealed that personal income tax aids government income to provide goods and services, and remains an instrument employed by the government to generate public fund. Consequently, the study finds out that personal income tax has a great impact on the economic viability of a nation and the implementation of this tax policy leads to economic growth. Also, the study found that tax evasion is a primary challenge of a tax regime in Edo State, lack of implementation of tax policy is responsible for infrastructural deficiency in the society and corruption is the bane of an effective tax regime.