Impact Of Taxation On Economic Growth In Nigeria Impact Of Taxation On Economic Growth In Nigeria

Abstract

The impact of taxation could not be overestimated. The significant of taxes inform of revenue of the government play major role in development of economic activities in Nigeria. Revenue from taxation are use to provide social amenities for the citizens. Taxation. Taxes are used for general administration purpose, defence  purpose, maintenance  of international laws and orders, redistribution of income, protection of infant industries in the country, It is used to counteract inflation and deflation, it is used to promote export , it is also used to discourage importation of dangerous or harmful goods in to the country, it is for stimulation of growth and development in an economy. It redistributes income among income earners in the country it is very equitable in nature, it is non inflationary in nature, it is very cheap to collect especially PAYE pay as you earn. The yield in taxation is very certain, it is less burdensome, it is perfectively elastic in nature, it is used to correct deficit balance is payment, it is very reliable source of government revenue, most of the problems associated with taxation included tax evasion, tax avoidance on uncertainty in the revenue collection, It is very regressive in nature. It has adverse effect on production and investment indirect taxes are inflationary in nature. It also restrict free trade false declaration of income, in proper book of account ignorance of importance of taxation, high taxes, among the prior income earners,  mismanagement of government fund and inadequate provision of amenities for the tax payers.

It is recommended that the government of Nigeria should use taxation (Fiscal policy) to achieve its set target that will enhance economic growth and development in Nigeria, governments should also create policies that will make an impact in taxation on the Nigerian economy.

Keywords: Taxation, Government expenditure, Economy, Fiscal policy, GDP, Investment, CBN