Journal of Emerging Trends in Economics and Management Sciences: Home

Article Title:
Corporate Tax and Revenue Generation: Evidence from Nigeria
by Madugba, Joseph Ugochukwu; Ekwe, Michael Chidiebere and Kalu, Justina Mgbokwo

Abstract:
The study, corporate tax and revenue generation: Evidence from Nigeria is designed to examine the impact of petroleum tax income and companies? income tax on total consolidated revenue of the government. It is expected that the study will be of immense use to both the Government and general public. The study tested the relationship between Petroleum Tax Income (PTI) on Total Consolidated Revenue (TCR) and the relationship between Companies Income Tax (CIT) on Total Consolidated Revenue. Pearson correlation and simple regression was used to analyze the data gotten from Central Bank of Nigeria Annual Statistical Bulletin of various years. The result of the correlation showed a positive significant relationship between Petroleum Tax Income and TCR. Also it showed a positive significant relationship between Companies? Income Tax (CIT) and Total Consolidated Revenue (TCR). The regression result revealed a negative significant relationship between Petroleum Tax Income and Total Consolidated Revenue and Companies Income Tax and TCR. We recommend that federal government should reduce the tax incentives granted to petroleum companies in Nigeria as well as non petroleum companies as this will increase the amount of tax revenue generated through corporate taxes in Nigeria. Also, the tax rate of non-petroleum companies should be increase as this will create room for more revenue from such source.

Keywords: corporate tax, petroleum tax, companies income tax, consolidated revenue

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