ABSTRACT

This study examined the impact of taxation as a fiscal policy tool to enhance economic development. This study adopted four different types of taxes as independent variables and their revenue accrued from these various taxes from 2012 to 2023 to compared with GDP from these years. OLS regression method of statistical analysis was adopted in measuring these variables presented with the result showed that CIT has a significant impact on economic development (β – 0.745, P-Value – 0.001), Petroleum income tax has a significant impact on economic development (β – 0.121, P-value – 0.017), Value added tax has a significant impact on economic development (β – 0.325, P-value – 0.018) and lastly the result of the data analyzed also indicated that personal income tax has a significant impact on economic development (β- 0.293, P-value – 0.042) proving the hypothesis to be alternate hereby, rejecting the null hypothesis.

The result output was made possible through data gathered from FIRS annual result report, CBN statistical bulletin and Nigeria National Bureau of statistic. Hence the study advises the government to Promote self-structured and assessment policy by increasing the contribution of taxpayers in tax matters and talks to promote trust among taxpayers and administrators which can help facilitate the preparation of quality accounting records.