Empirical Assessment of the Impact of Tax Reforms on Economic Development in Nigeria: A Time Series Analysis for Pre and Post Reforms Periods
Abstract
The objective of this study was to evaluate the impact of tax reforms on economic development of Nigeria. The study adopted the ex-post factor research design to perform impact analysis on already existing secondary data obtained from the various reports of the Central Bank of Nigeria, the Federal Inland Revenue Services and the World Bank. Regression analysis techniques were used to measure the impacts of the independent variables on the dependent variables. The study confirmed a positive and statistically significant association among the variables of study represented by company’s income tax and value added tax for tax reforms and real gross domestic product for economic development. It was thus recommended that policy makers in Nigeria should prioritize improving the productive capacity of the economy by reforming the tax law as this will foster economic development in the long run. Government should also seek to expand the tax net/yield through effective tax enforcement mechanism to drive the economy; and such tax reforms should be systematically and strategically undertaken in every five years intervals.
Keywords
Tax reformseconomic developmenttime seriespre and post reforms periods
References
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