RELEVANCE OF INDIRECT TAX REVENUE ON ECONOMIC DEVELOPMENT IN NIGERIA, 1991-2020.
Keywords:
Indirect Tax Revenue, Economic Development, VAT, Human Development Index, Export Tax Efficiency, Import Tax EfficiencyAbstract
The study examined indirect tax revenue and economic development in Nigeria from 1991-2020. The specific objective of the study were among others; to determine the effect of VAT efficiency on human development index in Nigeria Also, determine the effect of import tax efficiency on human development index in Nigeria determine the effect of export tax efficiency on human development index in Nigeria. Ex-post facto research design was employed. Population of the study comprised the population of the Nigerian economy. Sample size is the same as the study population. The instrument of the study is secondary data. The formulated research questions were analyzed with both descriptive and econometrics techniques. While simple regression analysis was adopted to test the hypotheses. The findings of the study among others were that; there is positive relationship between vat efficiency and human development index in Nigeria. There is positive relationship between exports tax efficiency and human development index in Nigeria. From the findings the following recommendations were made among others; The analysis showed that, indirect tax revenue impacted on economic development; thus, government should formulate and implement export policy measures towards exporting goods that are growth and development drivers, particularly, refined goods in the area the nation has comparative advantage in order to make the domestic production viable and compete with the industrialized economy of the world. Given the fact that, the empirical result showed that, indirect tax revenue is positively with economic development in terms of HDI and per capita income, in Nigeria, government should coordinate the ministry in charge of tax revenue (FIRS) so that more revenue generated will be well-managed and channel to the critical sectors of the economy in the absence of systemic corruption in order to enhance growth and development of the Nigerian economy.