Personal Income Tax and Infrastructural Development

ABSTRACT
This study investigated the personal income tax and its infrastructural development in Edo state. The longitudinal research design was adopted for the study. The Central Bank of Nigeria (CBN) and Edo State Internal Revenue Service (EIRS) were chosen for the purpose of the study. The data used  in the study were obtained from secondary sources. The research employs quantitative method of data analysis; it was done in four folds: firstly, the descriptive analysis was performed using the mean, maximum, minimum, skewness, kurtosis and the probability of jarque berra statistics. Other diagnostic tests were conducted to certify the integrity of the data.
The findings of the regression analysis reveal that Capital Gains Tax (CGT) had a positive and significant impact on Infrastructural Development (IFR); Stamp Duty (STD) was found to have a positive and significant impact on Infrastructural Development (IFR), Value Added Tax (VAT) was found to impact negatively but significantly on Infrastructural Development (IFR), and Personal Income Tax (PIT) was found to impact negatively but significantly on Infrastructural Development (IFR).
The study concludes that taxes have a significant role in government decision to invest in infrastructural development. The study hereby recommends that; There should be stringent penalty imposed on any individual or corporate body who indulge in any form of tax malpractices irrespective of states; Efforts should be intensified by the government towards increased collection of tax revenue this is due to the low contribution of tax revenue over the period of study; Government should be able to use taxpayers’ monies in the provision of infrastructural facilities.