Abstract
The study empirically examined the effect of capital gains tax on the economic development in Nigeria from 2011 – 2016. Data for the study was obtained mainly from secondary sources, the statistical data based and Bulletin of the Central Bank of Nigeria (CBN) and the website of the Federal Inland Revenue Services (FIRS). Simple regression was employed in determining the functional relationships existing between the variables in the model. Ordinary least square (OLS) method was used to compute the formulated hypotheses. The result showed that capital gains tax contributes significantly to the total tax revenue of government and by extension the economic development of Nigeria. It is therefore recommended that government should be transparently and use revenue generated through capital gains tax for the development of the economy, as tax payers would be willing to pay. The government on the other hand should be able to develop the economy to justify the collection of tax payers money. Keywords: Capital gains tax, economic growth and development, revenue generated and tax payers, money. DOI : 10.7176/RJFA/10-17-04 Publication date :September 30 th 2019
Highlights
Generating revenue through tax is one serious business of the government all over the world today
The result of the ordinary least square (OLS) in table 4.3 indicates that capital gains tax has significant ypositive relationship with gross domestic product (GDP) in Nigeria which creates a positive impact on the development of Nigeria economy
The study investigated the impact of capital gains tax on the economic development of Nigeria
Summary
Generating revenue through tax is one serious business of the government all over the world today. Taxes paid to the government include personal income tax, company income tax, petroleum profit tax, value added tax and capital gains tax All these taxes generate revenue to the government through one way or the other. Taxes are used to achieve economic growth, equity in income and wealth creation as well as distribution (Gatawa, Aliero and Aishatu, 2016). Taxes are used to achieve economic growth, equity in income and wealth creation as well as distribution (Gatawa, Aliero and Aishata, 2016) This idea was defeated because of lack of transparency, accountability on the part of the administrators and the issue of non-compliance with the payments and other tax related matters give a wrong and negative signals. There has been persistent falls or drops in government revenue, economic growth and development becomes stagnated
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