The Impact of Tax Revenue on Economic Growth

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PROPOSAL INTRODUCTION 1.1 Background of the study The political, economic and social development of any country depends on the amount of revenue generated for the provision of infrastructure in that given country. However, one means of generating the amount of revenue for providing the needed infrastructure is through a well structured tax system (ogbona and ebimobewei, 2012). The vital role that taxation play in an economy cannot be overemphasized. Tax is a compulsory levy imposed by government or its agent on her citizens in order to raise revenue for the funding of economic activities. Nkoro and worlu, 2012 defined Tax as a fee charged or levied by a government on a product, income, or activity. If it is levied directly on…show more content…
* There is positive relationship between indirect tax and economic growth. * There is an inverse relationship between lagged tax revenue and economic growth. 1.5 SIGNIFICANCE OF THE STUDY The study would provide an econometric basis upon which to examine the effect of tax revenue on Nigeria’s economic growth. It will empirically highlight the effect of various form of tax revenue on the growth or otherwise of the Nigerian economy, thus the study would be of relevance to the government, individuals and researchers in similar field of study. 1.6 SCOPE AND METHODOLOGY The scope of this study shall cover the revenue generation from taxes and tax reforms in Nigeria over the years to date. However, the main focus of this study is an x-ray of the effects of tax revenue on the growth of Nigerian economy. The study will focus on the Nigerian economy from 1990 to 2013. Methodology is the specification of procedures for collecting and analyzing the data necessary to help solve the problem at hand so that the difference between the cost of obtaining the various level of accuracy and the expected value of information associated with each level of accuracy is maximized. Secondary data shall be used for this study. The relevant data to be used would
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