Tax amnesty and economic development in Nigeria


  • (1)  Ogbonna G. N.            University of Port Harcourt  
            Nigeria

  • (2)  Victor I Jumbo             University of Port Harcourt  
            Nigeria

    (*) Corresponding Author

Keywords:

Tax Amnesty, Economic Development

Abstract

This study investigated the impact of the recent tax amnesty programme implemented by the Nigerian Government, on the country’s economic development using quarterly data from Q1 of 1995 to Q4 of 2018 obtained from the Central Bank of Nigeria database and the World Bank development indicators. Autoregressive Distributive Lag (ARDL) framework was applied for the data analysis and the result showed that the Tax amnesty program which was implemented between July 2017 and June 2018 has no significant impact on nominal GDP per capita which served as proxy for economic development. However, while company income tax showed no significant impact on nominal GDP per capita, the effects of both custom and excise duties and value added tax extend beyond the current period because value added tax has a negative total effect on nominal GDP per capita whereas the total effect of custom and excise duties is positive. Based on these findings, this study concludes that custom and excise duties significantly influence Nigeria GDP per capita because of the strategy of their implementation and collection while company income tax and VAT do not. In view of the foregoing conclusion, this study recommends that a future tax amnesty program should not be undertaken by the government until it had addressed the critical issues of lack of sufficient data, capacity constraints, inadequate advocacy for tax payment consciousness, corrupt tax officials and lack of political will. The government is also advised not to effect any increase in VAT, but could increase the customs and excise duties because of their respective economic advantage and positive effects on per capita income.

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Published

2021-05-07

How to Cite

G. N., O., & Jumbo , V. I. (2021). Tax amnesty and economic development in Nigeria. Middle European Scientific Bulletin, 12, 285-397. Retrieved from https://cejsr.academicjournal.io/index.php/journal/article/view/550

Issue

Section

Political Science