SOURCE:

Faculty: Management Sciences
Department: Accountancy

CONTRIBUTORS:

Omesi, I.
Okoye, E. I.

ABSTRACT:

The study was designed to evaluate the effect of tax reforms on economic development of Nigeria (1994-2014). The research design adopted in this study was the ex-post facto research design. To achieve the objectives of this study, twelve specific objectives and twelve research questions were raised while six research hypotheses were formulated. The independent variable was measured by petroleum profits tax (PPT), Companies income tax (CIT) and Value added tax (VAT) while economic development was proxy by gross domestic product (GDP) and infrastructural development (ID). The study made use of secondary data which were collected from the Central Bank of Nigeria (CBN) and Federal Inland Revenue Service (FIRS). Data obtained were analysed using Chow test statistical tool with the aid of E-view version 7.0. Findings showed that tax reforms actually impacted positively on the economic development. The findings also showed that tax reforms impacted the economy in both the pre reform periods and post reform periods. Based on the findings, the study recommended that the practice of reforming the Nigerian tax system should be upheld in order to continue to increase the total revenue of Nigeria. The study concluded therefore, that the practice of reforming the Nigerian tax system is inevitable and should be carried out every four years in order to continue to increase the total revenue of Nigeria especially at this period of global drop in the price of oil.