EFFECT OF CORPORATE TAX ON THE NIGERIAN ECONOMY

Authors

  • Bassey Eyo Bassey, Aganyi, Alfred, Peter A. Uklala, Adie Cletus Inisor, Ekperi Kalada

Abstract

This paper analyzed empirically the effect of corporate tax on the Nigerian economy using the Robust Least
Squares Technique to estimate the model. The findings of the result revealed that there is a positive but insignificant
relationship between company income tax (CIT) and gross domestic product (GDP), whereas value added tax (VAT) has
a positive and significant effect on gross domestic product (GDP). Also, the interaction between company income tax and
value added tax (CITVAT) have a negative, but significant effect on gross domestic product (GDP). The study
recommends that government should overhaul tax collection procedures and processes to increase tax revenue collected
by plugging all loopholes in the tax laws that encourages tax evasion, and also government should pay close attention to
tax avoidance practices of firms to reduce the level of tax avoidance

Published

2020-11-20

Issue

Section

Articles