TAX REFORMS AND TAX PAYER’S PERCEPTION

ABSTRACT

The study is informed by the quest to examine the series of tax reforms and the perception of tax payer. Results shows that the perception of tax payers is positively significantly related to tax reforms and that tax reforms affects tax payers perception. Favorable tax reforms improves the revenue generating revenue generating capacity of the government to undertake socially desirable activities that translates to positive perception of taxpayer. However, it is recommended that sustainable growth can be heightened through taxes in line with macro-economic objectives, corrupt-free and efficiency in ax policies of the government, alongside, accountability and transparency of government officials. The various income taxes were used as a proxy for tax reforms and GDP as a proxy for tax payer perception. The research adopted developmental research design. Data was basically collected by primary means through questionnaire administered to forty six (46) active business ownwrs in Oredo local government area of Edo State, Benin City. Three hypotheses were formulated and tested with the used of regression analysis and T-test. Based on the result of the analysis, the three null hypotheses were rejected and the alternate hypotheses accepted. It was thereby concluded that; taxation reforms has significantly impact on perception of tax payers. The study proposed that tax reforms provides good tax handle for the government to maximize its revenue. However, to maximize revenue from these taxes, the administration should be improved upon with effort directed towards reducing tax avoidance and evasion.