The Impact of Taxation on Revenue Generation in Kogi State, Nigeria

Abstract

The study was designed to examine the impact of taxation on revenue generation in Kogi State. Three research questions and three hypotheses guided the study. Cross sectional data was used the regression analysis and was soured from documentation of National Bureau of statistics and Board Internal Revenue Lokoja (2004-2014). The result of the analysis of t= 1.619646 showed that taxation has positive impact on revenue generation in the State and is significant at 5% level. Research questions two and three were tested using data collected through questionnaire administered to 300 and 200 workers of Board of Internal Revenue and ministry of Budget and Planning Lokoja. The mean response of the respondents with the use of Likert scale method showed that tax revenue has positive effect on economic development in Kogi State. Also, the analysis conducted on the identified items on the causes of tax evasion and tax avoidance showed that tax evasion and avoidance had negative effect on revenue generation and resulted to low revenue generation. We therefore recommended that government should make sure that different authorities charged with the responsibility to collect taxes should be strengthened to enforce compliance by tax payers in the payment of levies due to them. Also, training and retraining of revenue official in necessary to enhance their efficiency and effectiveness in collection and remittance of collected revenue to the State were made.