Journal • CITN Journal

Editorial Board

Editor-in-Chief

Professor Rafiu Oyesola Salawu

Department of Management & Accounting, Faculty of Administration, Obafemi Awolowo University, Ile-Ife

Managing Editor

Professor Godwin Emmanuel Oyedokun

Department of Management & Accounting, Lead City University, Ibadan, Nigeria

Editorial Board Secretary

Mary-Fidelis Chidoziem Abiahu

Director, Research and Professional Standard, Chartered Institute of Taxation of Nigeria

Editorial Board Members

Professor Chinedum Nathaniel Nwezeaku

Federal University of Technology, Owerri

Professor John Adeoti

Nigeria Institute of Social and Economic Research (NISER), Ibadan

Professor Uche Jack-Osimiri

Faculty of Law, River State University, Port Harcourt

Professor Aruwa Suleiman Akwu-Odo Salihu

Nasarawa State University, Keffi Nasarawa State Nigeria

Dr. Eiya Ofiafoh Ofiafoh (Associate Professor)

Department of Accounting, University of Benin, Benin City, Nigeria

Dr. Stephen Chukwuemeka Mark Abani

MCSA Worldwide Projects Limited, Abuja, Nigeria

Dr. Kenny Adedapo Soyemi

Department of Accounting, Olabisi Onabanjo University, Ago Iwoye, Ogun State, Nigeria

Professor Joseph Uchenna Uwaleke

Department of Banking & Finance, Nasarawa State University, Keffi Nasarawa State, Nigeria

Barrister Chukwuemeka Eze

Faculty of Law, Nasarawa State University, Keffi Nasarawa State, Nigeria

Mr. Simon Nwanmaghyi Kato

Federal Inland Revenue Service, Chairman’s Office, Abuja, Nigeria

TAXES AND INFRASTRUCTURAL DEVELOPMENTS IN EDO STATE

Description

TAXES AND INFRASTRUCTURAL DEVELOPMENTS IN EDO STATE

Authors

IBADIN Peter Okoeguale and OHONBA, Nosa

Abstract

Taxes are potent instruments for development. State governments however have limited space for tax revenue collections in the face of mounting and emerging functions expected to be performed. Edo State government is one state that is agrarian and an emerging hub of economic activities and one of the few states where the National Insurance Health Scheme and investments in health have occurred. What resources are in the hands of the government to address all of these? This study examined the taxes collected by the Edo State government and their impact on the Infrastructural Development Revenue Service (EIRS). To achieve this objective, the longitudinal research design was used. The data used were obtained from the Central Bank of Nigeria (CBN) and Edo State Internal Revenue Service. We employed the parsimonious Error Correction Model, after conducting a cointegration test, to ascertain the short-run and long-term term-dynamics of the data. Findings revealed that Capital Gains Tax on Individuals (CGTi) and Stamp Duty on Individuals (STDi) had a positive relationship with and significant impact on Infrastructural Development (IFR). In contrast, Value Added Tax (VAT) and Personal Income Tax (PIT) were negative but significant in their impact on Infrastructural Development (IFR). The study concludes that taxes used have a significant role in infrastructural development. The study recommends that the taxpayers should, via incentives and moral persuasion from the government continually pay their taxes, while the government utilizes proceeds of tax for good governance.

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