Abstract
The responsibility of the government of any economy cannot be overemphasized. Likewise, the resources generated and infrastructural development helps to boost the economic growth of any nation. There has been overdependency of Nigerian economy on the oil sector, the major source of revenue. However, this sector has experienced several challenges ranging from devaluation in naira and fall in prices of crude oil in the international market. This serves as a revelation for the Nigerian government to seek an additional source of income. To this end, the main aim of this paper is to examine the impact of total tax revenue on agricultural performance in Nigeria. The study uses Engel and Granger approach to cointegration to establish the long- and short-run behavior, it was found that a positive and significant relationship exists between revenue obtained in the agricultural sector, capital in agricultural sector proxy by loan and agricultural output, while employment and total tax generated are not significant in the short run. In the long run, employment, capital and total revenue are statistically significant with agricultural output, while tax is insignificant. The implication of the result showed that tax has not yielded desirable result in promoting the agricultural sector in Nigeria. To promote pro-poor growth, long-run employment and improve overall welfare, there is a need to incorporate benefit from tax into agricultural performance. The study recommends among others the need for a systemic approach, given a significant percentage of the total tax generated to boost the development of the agricultural sector.
Highlights
The government of any economy is saddled with the responsibility of increasing the welfare and standard of living of its citizens, protection of lives and properties, provision of social welfare service, maintenance of law and order and the promotion of economic development amongst others
Findings from the study reveal that Value-added Tax (VAT) contributes greatly to the total tax revenue of the government and has a significant influence on economic development in Nigeria
The main goal of this research is investigate the influence of tax revenue on agricultural performance in Nigeria
Summary
The government of any economy is saddled with the responsibility of increasing the welfare and standard of living of its citizens, protection of lives and properties, provision of social welfare service, maintenance of law and order and the promotion of economic development amongst others To carry out these functions, there is a need for various sources of revenue generation. Findings from the study reveal that Value-added Tax (VAT) contributes greatly to the total tax revenue of the government and has a significant influence on economic development in Nigeria. Despite different studies established a strong connection between tax and economic development in Nigeria, the influence on agricultural performance have not been looked into. Tax may be imposed on income, properties, land and goods or services (Modan, 2016) Against this backdrop, the main goal of this research is investigate the influence of tax revenue on agricultural performance in Nigeria
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