The Impact of Petroleum Profit Tax on the Nigerian Economy

Muhammad Usman¹ , Aliyu Abba² , Bishir Balarabe³ , Ashiru Halilu⁴

Section:Research Paper, Product Type: Journal-Paper
Vol.5 , Issue.12 , pp.30-36, Dec-2019

Online published on Dec 31, 2019

Copyright © Muhammad Usman, Aliyu Abba, Bishir Balarabe, Ashiru Halilu . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
The study aims to assess the impact petroleum profit tax on the Nigerian economy. The population of the study covers the economy as whole with a particular reference to Federal Inland Revenue Services Katsina. The data were collected from Federal Inland Revenue Services Katsina, CBN Statistical Bulletin from 2006-2015. The data were analyzed using descriptive statistics, correlation and regression analysis. The result of the analysis was tested at 0.05 (5%) level of significance. The findings of the study show that insignificant relationship exists between Petroleum Profit Tax and Gross Domestic Product, and also significant relationship exist between Petroleum Profit Tax and Total Revenue Generated. Therefore, the study recommended that, Government should look for other alternatives that will increase Gross Domestics Product other than Petroleum Profit Tax. Such alternatives include increase in Agricultural Sector, Industrial Sector etc. It is also recommended that Government should look for other ways to ensure that petroleum Profit Tax are judicially collected, that will increase the total revenue generated in Nigeria.

Key-Words / Index Term :
Tax, Taxation, Petroleum, Economy

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