Personal Income Tax and Economic Development in Lagos State, Nigeria
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Date
2024-12
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Lead City University, Ibadan
Abstract
The rate at which Nigeria economy (GDP) continuously nosedives urgently calls for the attention of researchers. The effect of personal income tax on economic development,particularly within the context of Lagos State, is a multifaceted issue that warrants comprehensive investigation. This research aims to determine the effect of Personal Income Tax on Economic Development, using the personal income tax of Lagos State as a case study. The time scope of this study spans from 2012 to 2023. This study adopts an ex post facto research design. Using documentation method of data collection, secondary data was collected from Lagos State Internal Revenue Services (LIRS) reports, National Bureau of Statistics (NBS) data, etc. Data collected were analyzed using a Hierarchical Regression in testing the hypotheses of the study with the aid of SPSS 25 Version. This study revealed that personal income tax, tax base and tax compliance rate contributed significantly to the gross domestic product of Lagos state. Arisen from the findings of the study, the researcher recommended that there is urgent need for the state government of Lagos state to encourage and develop various mechanisms for generating more PIT in order to increase the gross domestic product. To ensure that PIT base increases, government should create opportunities for employment generation. To increase compliance rate, government should engage tax professionals, employ faithful, dedicated and hardworking staff to assist in the area of tax collection from small and medium scale business in Lagos state. Also, there is need for proper documentation and management of this revenue.
Keywords: Personal Income Tax, Tax Base, Tax Compliance Rate, Gross Domestic Product
Word Count: 253
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Keywords
Personal Income Tax, Tax Base, Tax Compliance Rate, Gross Domestic Product
Citation
Kate turabia