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Author(s): Chikwendu Nneka Francisca.

Volume/Issue: Volume 5 , Issue 3 (2022)

Abstract:

This study carried out an empirical analysis of the effect of the online system of taxation on economic growth in Nigeria covering the period of 2005–2020. Data for the research was extracted from the Central Bank of Nigeria (CBN) Statistical Bulletin (2020). The multiple regression with the application of Ordinary Least Square (OLS) technique was employed in obtaining the numerical estimates of the coefficient in different equations (Pre-Online and Post-Online Tax Regimes). The One-Sample Test was employed to estimate the difference between pre-online and post-online taxation systems on economic growth in Nigeria. The major findings of the study revealed that pre-online tax revenue has a negative and non-significant effect on economic growth in Nigeria, post-online tax revenue has a positive and significant effect on economic growth in Nigeria, and there is significant difference between pre- and post-online tax revenue in Nigeria. It is the recommendation of the study that there should be stringent penalties imposed on any individual or corporate body who indulges in any form of tax malpractices, irrespective of states. If the positive impact of tax revenue on economic growth should be maintained, then the online tax system should be constantly reviewed so as to address emerging problems and to evolve with the changing economic landscape and increased complexity of today’s business environment.

Keywords:

Online System of Taxation, One-Sample Test, Pre-Online and Post-Online Tax Regimes.

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