TAX CULTURE AND ECONOMIC DEVELOPMENT OF THE SECOND TIER GOVERNMENT IN NIGERIA (A case study of Edo State)


TAX CULTURE AND ECONOMIC DEVELOPMENT OF THE SECOND TIER GOVERNMENT IN NIGERIA (A case study of Edo State)     

ABSTRACT

The research work tax culture and economic development of the second tier government in Nigeria aimed to find outthe relationship between tax culture and economic development in Nigeria, the major objectives of the study includes the impact of taxation on the economic development of Edo State, the impact of taxation by the second tier of government on the public masses. The study made use of primary which was obtained from the distribution of the research questionnaires; the sample size for the study was 200. The hypothesis was analyzed by the spearman correlation method. The study finds out and concluded that there is significant relationship between tax culture and economic development in Nigeria. Proper recommendations were made to assist the federal government of Nigeria, the state government in decision making and policy development.

TABLE OF CONTENT

CHAPTER ONE

1.1 Background of study

1.2 Statement of problems

1.3 Objectives of Research

1.4 Scope and limitations

1.5 Research questions

1.6 Significance of study

1.7 Definition of Terms

CHAPTER TWO

2.0 Introduction

2.1 The history of taxation in Nigeria

2.2 Literature Review and Theoretical Issues

2.3 Problems of Tax Collection

2.4 Prospects of Tax Collection

2.5 Characteristics of Good Tax System

2.6 Driving Institutions to tax policy and tax administration in Nigeria

2.7 Theoretical Issues

CHAPTER THREE

3.0Introduction

3.1 research design

3.2 population of study

3.3 sample size/sample technique

3.4 research instrument:  

3.5 validity and reliability of instrument

3.6 sources of data collection

3.7 method/techniques of data analysis

3.8 limitations of the methodology

CHAPTER FOUR

Data Presentation and Analysis

4.1Introduction

4.2Data Analysis

4.3 Test of Hypothesis

CHAPTER FIVE

5.1Findings

5.2Conclusion

5.3Recommendation

5.5References

5.6 Appendix

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The relative roles of the three tiers of government—the federal government, the state governments, and the local government authorities (LGAs)—in public service delivery has emerged as one of the most important topics of open and vigorous debate in the new democratic climate in Nigeria. There havebeen increasing calls for intergovernmental fiscal relations to be reassessed in light of a widespread belief that although the states and LGAs are assigned primary responsibility for the delivery of basic public services, they arenot equipped with adequate revenueresources tofulfill their expenditure obligations because the bulk ofgovernment revenues is retained by the federal government. The second tier government which is the state government and the focus of this study has the highest responsibility to deliver infrastructure and other public services, hence the need to generate more money through taxation.

Within the last decades issues of domestic resource mobilization has attracted considerable attention in many developing countries including Nigeria. In the face of unabated debt difficulties, coupled with the domestic and external financial imbalances confronting them, it is not surprising that many developing nations have been forced to adapt stabilization and adjustment policies and increase revenue which demand better and more efficient methods mobilizing domestic financial resources with the view of achieving financial stability and promoting economic growth. Taxation plays a significant role in achieving the purpose of economic development. 

According to Opuene (2006), in Ofurum and Ferry (2009), taxation is the imposition by the government of a compulsory levy on the income, profit, property, or the expenditure (consumption) of an individual, family, community, firms or corporate bodies so as to enable the government carryout its economic and social responsibilities to the citizenry.

In a federation like Nigeria, the concept of inter-governmental fiscal relations subsists, and the government’s fiscal power is based on three-tier tax structure –federal, state, and local governments, each of which has different tax jurisdiction for the enactment of tax laws,formulation of tax policies, and tax administration (Odusola, 2006). In 2002, about 40 different taxes and levies are shared by all three levels of government. Each tier of government has the sphere clearly spelt out in the Taxes and Levies (approved list for collection) Decree, 1998. The most veritable tax handles are under the control of the federal government while the lower tiers are responsible for the less buoyant sources, which imply that the federal government tax corporate bodies while the state and local governments tax individuals. 

In recent times, the revenue allocation to states from the federation account is not only dwindling but also grossly inadequate. This coupled with the ever increasing financial needs of states compelled state governments to imbibe the culture of improving internally generated revenue as alternative means of meeting and sustaining the various competing financing needs. To achieve this purpose, State governments diverse various means of improving their revenue base and the most popular means is through taxation. Laffer (2012) claimed that state income tax levels have impact on economic growth. It has also been reported that taxation enhances the economy of a nation as a means of achieving financial stability and promoting economic growth. The tax system in most states of the federation is seen as an embodiment of contention and controversy whether in its policy formulation, legislation or administration. Based on the above, the researcher is to provide an overview of the impact of Edo State government taxation culture on economic development of the state.

1.2 STATEMENT OF THE PROBLEM

A state’s tax system is a major determinant of other macroeconomic indices. Specifically, there exists a relationship between tax structure and the level of economic growth arid development. Indeed, it has been argued that the level of economic development has a very strong impacton a state’s tax base (Hinricks, 1999), and tax culture objectives vary with the stages of development. Similarly, the (economic) criteria by which a tax structure is to be judged and the relative importance of each tax source vary over time.For example in Edo State, the incoming of the Governor Adams Oshiolmole in 2008 ushered in a serious tax regime, a situation where income from taxation is very important to government for the purpose of infrastructural development.

1.3 OBJECTIVES OF THE STUDY

The following are the objectives of this study:

1. To examine the relationship between tax culture and economic development in Nigeria.

2. To examine the impact of taxation on the economic development of Edo State.

3. To examine the impact of taxation by the second tier of government on the public masses.

1.4 RESEARCH QUESTIONS

1. What is the relationship between tax culture and economic development in Nigeria?

2. What is the impact of taxation on the economic development of Edo State?

3. What is the impact of taxation by the second tier of government on the public masses?

1.5 HYPOTHESIS

HO: There is no significant relationship between tax culture and economic development in Nigeria.

HA: There is significant relationship between tax culture and economic development in Nigeria.

1.6 SIGNIFICANCE OF THE STUDY

The following are the significance of this study:

1. The outcome of this study will educate the general public in Nigeria and particularly in Edo State on the relationship between taxation by the second tier of government and economic development.

2. This research will be a contribution to the body of literature in the area of the effect of personality trait on student’s academic performance, thereby constituting the empirical literature for future research in the subject area.

1.7 SCOPE/LIMITATIONS OF THE STUDY

This study will cover the taxation by the Edo State government and economic development of the state.

LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work

REFERENCES

Hinricks, H (1999) A general theory of tax structure change during economic development; Cambridge; Mass Harvard Law School

Laffer, J (2012) Taxation and Economic Growth in Asia; Jack Journal of Public Administration; 6(2); 116-124

Odusola, A (2006) Tax policy reforms in Nigeria. Research Paper No. 2006/03. United Nations University; Unu-Wider

Ofurum, C.O and Ferry, G.B (2009) Tax administration in Nigeria-concept and practice, Port-Harcourt, Davidstones Publishers Ltd

.

TAX CULTURE AND ECONOMIC DEVELOPMENT OF THE SECOND TIER GOVERNMENT IN NIGERIA (A case study of Edo State)



TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.NET

Researchwap.net is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.net guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.net is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.net" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.