THE IMPACT OF TAXATION REVENUE ON ECONOMIC GROWTH IN NIGERIA FROM 2005-2014

THE IMPACT OF TAXATION REVENUE ON ECONOMIC GROWTH IN NIGERIA FROM 2005-2014

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In a natural resources blessed country like Nigeria also with the operation of indigenous and foreign companies, the problem of underdevelopment should not be the topic of the day. Thus the emphasis on taxation by one and all cannot be over emphasized though is just one of the avenue open to the government to generate revenue. Taxation according the Nightingale (1997) is a compulsory contribution imposed by the government on its citizens. Our guest to ensure economic growth shall meet with desired expectation if all expected tax is paid and as at when due. From the forgoing, we can now deduce the need to garnish our understanding with contemporary knowledge in the area of taxation, economic growth so as turn around the fortune of our governments.
Taxes are levied on individuals, groups, business or corporate organization, by constituted authority for funds used by state in the maintenance of peace, security, economic growth and social engineering among others for the benefits of the citizenry. In this view, the management of a society for effective growth rest on the government who can only discharge such responsibilities creditably to the citizenry with adequate resources. Therefore, it behaves a responsible citizenry to discharge his/her duties to the state through prompt and regular payment of taxes. The economic history of both developed and developing countries reveal that taxation is an important weapon in the hands of the government; not only to generate revenue, but also to achieve goals
such as influencing the direction of investment and taming the consumption of certain foods and services. As hold by Hyman (1992) a tax is simply a compulsory payment levied on the citizens by government for the purpose of the government itself. Traditionally, taxes are based on income of individuals or profit of an economic entity. Other bases of taxes are wealth, capital, property and consumption. All forms of consumption taxes falls within the preview of indirect taxation, income taxes and those based on capital and wealth are in the realm of direct
taxation. The imposition is a tax is based on certain considerations. One of these is how effective as well as equitable the tax can be. Since tax can be equitable without being effective and vice versa, the capacity of the tax based to reflect both equity and effectiveness becomes a serious subject in taxation. Taxation as a system has been known to have existed as early as history. In the Bible, we learnt that even Christ paid tax and also encourage his disciples to follow suit. According to bible book Mathew 17:24 and 25 there; Christ gave evidence that there was payment of tax back then. Also in Romans 13:7 also attested to that.
During his missionary days on earth, he says the need to support the Romans Government through the payment of tax, hence, he advised his followers to render therefore, unto Caesar the things which are Caesars. Nearly, fiy
year aer, it is therefore not surprising that Nigeria is yet to appreciate the fundamental place of taxation; hence what is in place even now could at best described as committees and commission charged with realizing various tax objectives concludes Adams (1993).

THE IMPACT OF TAXATION REVENUE ON ECONOMIC GROWTH IN NIGERIA FROM 2005-2014