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

IMPACT OF TAX REFORMS ON MACROECONOMIC UNCERTAINTY IN NIGERIA

Description

IMPACT OF TAX REFORMS ON MACROECONOMIC UNCERTAINTY IN NIGERIA

Authors

ADESOYE, Sodeeq Opeyemi and NJIFORTI, Peter P.

Abstract

This study investigates the impact of tax reforms on macroeconomic uncertainty using quarterly data of CBN statistical bulletin and FIRS tax statistics from 2011-2021 on four variables; GDP growth rate (GDPGR) to capture macroeconomic uncertainty, company’s income tax (CIT), and value added tax (VAT) revenue as proxy of tax reform, while standard deviation uncertainty (SDVAT) as the control variable. The Autoregressive Distributed Lag (ARDL) and Bound test technique was employed to assess the long and short-run properties of the variables, as the Augmented Dickey Fuller (ADF) tests revealed that all series were found to be integrated of mix order. Findings reveal that change in corporate tax rate (CIT) has a dynamic significant effect on economic growth rate in both the short and long run, while value added tax (VAT) has a positive effect on macroeconomic uncertainty and become significant in the long run and standard deviation uncertainty (SDVAT reveals a positive minimal significant impact on economic growth rate. The study recommends that policymakers should assess the wider impact of tax policy before implementing them due to its significant role in economic sustainability. Despite the data scope limitation, this study contributes novel insights into fiscal dynamics impact on economic growth and predictability of macroeconomic outcome.

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