THE IMPACT OF TAXATION IN THE ECONOMIC DEVELOPMENT OF EDO STATE (A CASES STUDY OF OREDO LOCAL GOVERNMENT AREA)

ABSTRACT

The research is the Role of Taxation in the Economic Development of Edo State on a case study of Oredo Government Area. Taxation plays much role in the economic development. Contrary to this, there are certain problems that hinder efficiency and effectiveness of Taxation. This work therefore focuses on a good system which comprises of operations, legal, regulatory framework to ensure efficiency and effectiveness in Tax system. This research work was carried out through the use of questionnaire which was developed by the researcher. In the course of the research work, survey method of research was used. The sampling technique used in this work was simple random sampling. Chi-square test statistics was used to analyze the data collected. Three hypothesis questions was raised and tested and the findings are as follows: these is signification role played by taxation in the economic development of Edo State, there is significant positive perception of taxpayers towards taxation, there is no significant efficiency in the government collection and uses of tax money. The research instrument used was primarily questionnaires. Secondary data such as textbooks, magazines, and lecture notes were also used. From the findings, it is clear that taxation has been able to make immense contributions towards the economic development of Edo State. Edo State government has been to collect huge amount of money from tax. Taxation has helped government to mobilize funds through Personal Income Tax (PIT), Company Income Tax (CIT) and VAT, for her developmental strides. The funds collected through these avenues are put into priority areas of road, flooding and erosion control and Primary and Secondary. The State Board of Internal Revenue (SBIR) and Join Board (JTB) played an important role in the management and regulation of tax system. They ensure that tax evasion and avoidance are at lowest ebb which account for steady increase in the Internally Generated Revenue (IGR) of the State government. Based on the finding, the following recommendations were made, Edo State Board of Internal should mount seminars and public enlightenment campaigns through print and electronic media to educate the populace on the need to pay tax and the basis of their assessment, Edo State government should restrain a little from overspending on some sectors while others, like the industrial sector is made to suffer.