ABSTRACT

This study investigated tax revenue and economic growth in Nigeria. The study covered a period of twenty-nine (29) years (1994 – 2022). The specific objective of this study were to determine the relationship between petroleum profit tax, company income tax, customs and excise duties, value added tax and Gross Domestic Product  (proxied for economic growth).

The Ordinary Least Square (OLS) regression technique was employed to estimate the data as well as testing the stated hypotheses. Findings revealed that petroleum profit tax does not significantly influence Gross Domestic Product (proxied for economic growth), while it is uncovered that company income tax, customs and excise duties, value added tax significantly influence Gross Domestic Product (proxied for economic growth) in Nigeria.

To this end, the study recommended that value added tax (VAT) Act should be amended based on destination principle to impose VAT on imported services rendered outside Nigeria by a non-resident company. This will act as an avenue to boost the VAT revenue in Nigeria as well as influence Gross Domestic Product.