International Journal for Tourism and Technology (IJTT)
This study investigated the effect of tax revenue on economic development in Nigeria. The objectives of the study among others were to ascertain the influence of Hydrocarbon tax on Per Capita Income in Nigeria, determine the effect of Corporate Income Tax on Per Capita Income in Nigeri. The population of the study was conducted on Federal Republic of Nigeria under the National Bureau of Statistics, Federal Inland Revenue Services, Central Bank of Nigeria (CBN) and Federal Ministry of Finance. The study period covered was thirty (30) years spanning from 1994 to 2023. This study utilized Descriptive statistics, Unit Root Test and Ordinary Least Square Regression method with the aid of E-View 12. The findings of the study were that the effect of hydrocarbon tax on per capita income in Nigeria is statistically positive and significant, the effect of corporate income tax on per capita income in Nigeria is statistically positive and significant, The study concluded that the effect of tax revenue on economic development in Nigeria is statistically significant for the period spanning from 1994 – 2023. Therefore, the study suggested amongst others that, government should intensify efforts at developing economy through tax payers’ revenue because, this study affirmed that hydrocarbon tax and corporate income tax has positive and significant effect on economic development in terms of human capital index and per capita income.
The rate at which economies are developing leads to inequality among nations worldwide. Along with a shift in the institutional and technical arrangements involved in production, economic progress guarantees an increase in output (Satope& Akanbi, 2014). Economically developed nations have made progress in a number of areas that result in changes to social, cultural, educational, political, and economic norms (Mick, 2007). According to Belshaw and Kanayo et al (2021), most people can make a living thanks to advancements in economic development.In order to achieve sustainable economic development, the government makes sure that money consistently flows into its treasuries. One way it does this is through taxation, which it uses to raise the money needed for public spending, redistribute income, stabilize the economy, overcome externalities, and influence resource allocation while also being beneficial to the economy (Stoilova&Patonov, 2012). Without a doubt, the structure and nature of the economy have an impact on the kinds of taxes that can be levied as well as the power to apply them. How economic transformation affects the evolution of the tax system is the main emphasis of the conventional economic approach to taxes and development (Besley & Persson, 2013). This in turn promotes investments in the administrative capacity to collect taxes, permits the introduction of additional taxes and an increase in tax income, and increases the demand for infrastructure as well as for redistributive taxation and spending among the populace (Bräutigam, 2008; Lindert, 2004).
Per Capita Income, tax revenue, Hydrocarbon tax