Tax proceeds and fiscal advancement: Pragmatic configuration in Cross River State, Nigeria

Abstract

This study examined tax proceeds and fiscal advancement: pragmatic configuration in Cross River State, Nigeria. The specific objectives of the study were to determine the relationship between personal proceeds tax and fiscal advancement of Cross River State and the extent to which tourism development tax affects the fiscal advancement of Cross River State. The study adopted the ex-post facto research design and scope comprised of the entire data related to personal proceeds tax and tourism development tax from the Cross River State Internal Revenue Service from 1990-2020. This study adopted the classical ordinary least squares regression techniques as the technique of estimation. Findings from the study revealed that, tax proceeds exerted a negative and insignificant effect on fiscal advancement in Cross River State. The study therefore recommended that, regarding road tax, there should be institutional reforms in order to plug leakages and enhance collection mechanism used by tax officials so as to free the collection of these taxes from corrupt tax payers and minimized embezzlement by insincere tax collectors. Government should make it impossible for companies to evade taxes by penalizing any registered company that evades tax.