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Effect of Indirect Tax on Economic Growth in Nigeria

Joseph, Fineboy Ikechi, Nwosu, Onyedikachi Paul, Omeonu, Obioma Mannaseh

Abstract

This study sought to determine how indirect taxes, such as the value-added tax and customs and excise duties, affected economic expansion. In this study, the exploratory and ex-post facto designs were both used. Given the length of time the data was collected, the research population spans a 10-year period (2009–2018). The 10 years are used as the sample size using the consensus sampling technique. The secondary data were gathered from the CBN statistical bulletin database, and the research employed the ordinary least squares method. Indirect taxes have a substantial impact on economic growth in Nigeria, according to the results of the hypothesis testing; hence it is advised that the government establish policies to increase revenue collection through indirect taxes as a key source of revenue generation in Nigeria.

Keywords

Excise DutiesValue Added TaxesIndirect TaxesEconomic Growth

References

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