ABSTRACT
In recent years, there has been a renewed emphasis on the significant impact of tax reform, with experts delving further into the moderating function of numerous factors. This project seeks to give a thorough knowledge of tax reform's influence on economic development. By critically assessing theoretical frameworks, analyzing empirical evidence, and taking into account moderating variables and trade-offs, we want to give useful insights for policymakers and researchers alike. However, the research acknowledges that sustainable economic growth cannot be achieved solely through tax reform processes unless outdated tax laws and rates are reviewed in accordance with macroeconomic objectives, corrupt-free and efficient tax administrative machinery with personnel, and government officials' accountability and transparency in tax revenue management. As a result, the purpose of this study is to give a complete knowledge of the possible negative consequences of tax reforms on Nigeria's economic growth. Data will be analyzed using descriptive statistics, Pearson correlation, and ordinary least squares. The study's findings shed light on numerous important aspects of Nigeria's tax policies and economic growth. First, the regression analysis shows a positive relationship between Company Income Tax (CIT) and Real Gross Domestic Product (RGDP), emphasizing the importance of business taxation as a driver of economic activity. This conclusion is consistent with previous research stressing the importance of tax policy in determining investment decisions and overall economic success. Other tax variables, such as Capital Gains Tax (CGT), Personal Income Tax (PIT), and Value Added Tax (VAT), did not have significant effects on RGDP, suggesting that their effects on economic growth are more subtle or impacted by factors outside the purview of the model.This study's conclusions have important consequences for theory, practice, and policy. First, the positive relationship between CIT and RGDP emphasizes the significance of creating tax policies that encourage company investment and entrepreneurship in order to boost economic growth. Policymakers should explore enacting tax changes that promote a positive business climate while guaranteeing fair and equitable taxing policies. Furthermore, the non-significant impacts of other tax factors on economic development highlight the need for more study into the processes by which these taxes influence economic outcomes and to identify possible areas for policy action. In conclusion, this study adds to the current literature by giving empirical data on the link between tax policy and economic development in Nigeria. The findings indicate that, while corporate income tax may play an important role in driving economic activity, the effects of other tax factors may be more complicated and context-dependent. Policymakers should take these findings into account when developing tax policy to promote long-term economic growth. Furthermore, future study should delve further into the subtleties of tax-policy interactions, as well as analyze the larger socioeconomic elements that shape Nigeria's economy.
