Impact of Consumption Taxes on Nigeria’s Economy
1DR. NATHAN, EMMANUEL, 2Dr. Francis Ariayefa Eniekezimene
1,2Department of Economics, Niger Delta University, Wilberforce Island, Bayelsa State
https://doi.org/10.47191/jefms/v7-i4-11
ABSTRACT:
Taxes are crucial to every economy's progress, developed or emerging. This research investigated Nigeria's consumption taxes. The empirical analysis utilised 1981-2021 annual data. The study's variables were analysed using error correction model. Following the findings made, this study have thereby established that, except for previous years consumption taxes, all consumption taxes in current year in Nigeria does not possess any significant explanation on the current state of the Nigerian economy. Therefore, current economic happenings in Nigeria cannot be attributably said to be a resultant effect of current changes in any of the consumption taxes in Nigeria, but a resultant effect of previous changes in all consumption taxes in Nigeria. The study suggested that the government maintain import, excise; value added tax and petroleum profit tax laws and guarantee their efficient execution to reduce consumer harm; and simplify tax administration, enhance compliance, and broaden tax net. Educating the public about tax benefits should be a priority.
KEYWORDS:
Consumption taxes, Exercise duty, Import duty, Nigeria economy, Petroleum profit tax
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