IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 8 2024
DOI: doi.org/10.56201/jafm.v10.no8.2024.pg412.427

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Effect of Direct Tax on Income Redistribution in Nigeria

OKUTUME, Ndidi Endurance, WILSON-OSHILIM, Uduak Deborah, ODUBUASI, Augustine Chukwujekwu

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Abstract

The Study empirically investigated direct taxes revenue and income redistribution in Nigeria to ascertaining their relationships. It however used specific objectives as company income tax, petroleum profit tax, personal income tax and education tax on income redistribution. The study made use of ex post facto research design and sourced data from Federal Inland Revenue Service (FIRS) and Central Bank of Nigeria (CBN) statistical bulletin. The population of study consisted of all the direct taxes as mentioned above which span from 1990 to 2020 financial years. The secondary data generated was analysed with Error Correction Model (ECM), Augmented Dickey fuller (ADF) and Engle and Granger co-integration test. The result showed that Company Income Tax and Petroleum Profit Tax have positive significant influence on income redistribution while Personal Income Tax and Education Tax have no significant effect on income redistribution in Nigeria. That followed the recommendations that the government should formulate policy that will improve the collection of direct taxes in Nigeria as to support income redistribution agenda of fiscal policy.

keywords:

Personal Income Tax, Company Income Tax, Petroleum Profit Tax, Education Tax

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References:

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https://dx.doi.org/10.47772/IJRISS.2023.701038.
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Awe, A. A., & Olawumi, O. R. (2012). Determinants of income distribution in the Nigerian
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