IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 11 NO. 2 2025
DOI: 10.56201/jafm.vol.11.no2.2025.pg382.399

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Informal Sector Electronic Taxation on Internally Generated Revenue Insights from Abia State

Ajuonu Anulika Uche, Offor Theresa Nkechi

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Abstract

This study explored the correlation between Informal Sector Electronic Taxation and Internally Generated Revenue insights from Abia State. To ascertain this relationship, the study utilized online direct tax assessment (ODTA) and online road taxes (ORT) as proxies for electronic tax. Employing an ex post facto design, data were sourced from the National Bureau of Statistics (NBS). Utilizing the Wilcoxon statistical test tool, the study's results revealed a positive and significant association between ODTA, ORT, and internally generated revenue in Abia State, Nigeria, at 1% and 5% significant levels, respectively. Consequently, it was deduced that informal sector electronic taxation on internally generated revenue (IGR) promotes accountability by eliminating loopholes such as ticket forgeries and racketeering, curbing revenue diversion, reducing the expenses related to printed tickets, and facilitating revenue calculations for the state internal revenue board in Abia State. Based on these findings, the study suggested that the government should implement measures to ensure that road tax rates are perceived as reasonable by taxpayers, thereby alleviating the burden and fostering compliance. By delivering on promises of discounts and offering incentives like accessing social services via the ABSIN platform, the government can uphold tax compliance and discourage tax evasion in the long term.

Electronic Taxation, Informal sector, Online Direct Tax Assessment, Online Road, Taxes, Internally Generated Revenue IGR, Efficiency

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