IMPACT OF TAXATION ON INDUSTRIAL PERFORMANCE IN NIGERIA

Callistus Ogu (PhD), Pascal Kem Ojimadu (PhD)

Abstract


The study examined the impact of taxation on industrial performance in Nigeria, from 1981 to 2018. Data were obtained from Central Bank of Nigeria (CBN) statistical Bulletin, Annual Report and Statement of Account for the year 2018 and WDI 2018 and fitted into a single linear model in which industrial performance is proxy by industrial output was the dependent variable and company income tax, petroleum profit tax, customs and excise duty tax, and manufacturing capacity utilization, served as the independent variables. However, from the result, jointly company income tax, petroleum profit tax, customs and excise duty and manufacturing capacity utilization, has a significant relationship on industrial output but individually tested, it shows that, Company income tax and petroleum profit tax has a positive impact and no significant relationship on industrial output while customs and excise duty tax, and manufacturing capacity utilization has a positive impact and significant relationship on industrial output. It was concluded that, the success of fiscal policy in promoting industrial sector depends on the level of public revenue available, the direction of public expenditure and its implementation and it was recommended,  Expansionary policies on fiscal policy measures should be encouraged as they play vital role for the growth of the industrial sector output in Nigeria and  There is need to redirect fiscal policy measures towards making Nigeria a producer nation through industrial sector which in turn would lead to economic growth and development.


Keywords


industrial output, company income tax, petroleum profit tax, customs and excise duty, manufacturing capacity utilization

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