For correspondence:-
Received: August 8, 2019 Accepted: September 21, 2019 Published: September 30, 2019
Citation: Companies Income Tax and Infrastructural Development in Nigeria. Account Tax Rev 2004; 3(3):22-30 doi:
© 2004 The authors.
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Abstract
The aim of the study is to examine empirically, the impact of company income tax on infrastructural development in Nigeria. This study adopts an ex-post facto research design. In this study, secondary data retrieved from the CBN statistical bulletin, Federal Inland Revenue Service (FIRS) and National Bureau of Statistics for various years were used. The data covers the period 1981-2017. The data analysis technique that is utilized in this study is the dynamic Least Squares for co-integrated regression. The findings of the study reveal that company income tax is generally not characterized with threatening oscillations year-on-year over the period. This is a good sign for policy makers as it implies that over the business cycle, company income tax revenue will still maintain some considerable stability and hence it can be depended upon in the forecasting, budget planning and fiscal coordination. The results reveal that the coefficient is positive and statistically significant at 5% level. Therefore, we reject the null hypothesis that CIT has no positive and significant impact on Infrastructural development in Nigeria. The study recommends that government should focus on Improving and stimulating Company Income tax revenue. The positive relationship between Company Income Tax and Infrastructural development is an indication that a higher company Income tax will lead to increased infrastructural development in Nigeria hence efforts should be geared towards expanding the tax base, ensure transparency in collections proper utilisation
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