Stamp Duty Tax and Growth of Economy: Evidence from Nigeria

Updata:01-01-1970

Source:
By:Ezejiofor Raymond A., Apete Collins

DOI: https://doi.org/10.30564/mmpp.v5i1.5523

Abstract:

This study looked at the impact of the Nigerian stamp duty tax on the growth of the economy. Time series data were employed spanning the years 1999-2020. For various years, related data were extracted from the Central Bank of Nigeria Statistical Bulletin, the Bureau of National Statistics, and Federal Inland Revenue Service reports. E-view 9.0 was used to test the hypothesis using the ordinary least square. The study outcome revealed that stamp duty has an insignificant and positive impact on Nigeria’s economic growth. It was recommended that the government improve public entities and provide strong government investment as a source of domestic revenue generated from various business activities.

References:

[1] Mcbride, W., (2012). What Is the Evidence on Taxes and Growth? [Internet]. Available from: https://taxfoundation.org/what-evidence-taxes-and-growth/ [2] Cobham, A., Janský, P., 2018. Global distribution of revenue loss from corporate tax avoidance: Re‐estimation and country results. Journal of International Development. 30(2), 206-232. [3] Pjesky, R.J., 2006. What do we know about taxes and state economic development? A replication and extension of five key studies. Journal of Economics. 32(1), 25-40. [4] Shuai, X.B., Chmura, C., 2013. The effect of state corporate income tax rate cuts on job creation. Business Economics. 48(3), 183-193. [5] Mbanefoh, A., 2012. Principles of taxation. International Journal of Academic Research in Business and Social Sciences. 5(6), 34-43. [6] Mankiw, N.G., Romer, D., Weil, D., 1992. A contribution to the empirics of economic growth. Quarterly Journal of Economics. 107, 407-437. [7] Nweze, C.L., Ogbodo, O.C., Ezejiofor, R.A., 2021. Effect of tax revenue on per capital income of Nigeria. International Journal of Research (IJR). 8(11). [8] Okeke, M.N., Mbonu, C.M., Ndubuisi, A.N., 2018. Tax revenue and economic development in Nigeria: A disaggregated analysis. International Journal of Academic Research in Accounting, Finance and Management Sciences. 8(2), 178-199. [9] Ogundana, O.M., Ibidunni, A.S., Adetoyinbo, A., 2017. Impact of direct and indirect tax on the Nigerian economic growth. Binus Business Review. 8(3), 215-220. [10] Kalaš, B., Mirović, V., Andrašić, J., 2017. Estimating the impact of taxes on the economic growth in the United States. Economic Themes. 55(4), 481-499. [11] Neway, G., Kenenisa, L.D., Woldemicael, S., 2018. Determinants of tax revenue in Ethiopia. Economics. 6(1), 58-64. [12] Atems, B., 2015. Another look at tax policy and state economic growth: The long and short run of it. Economics Letters. 127(1), 64-67. [13] Dladla, K., Khobai, H., 2018. The Impact of Taxation on Economic Growth in South Africa (No. 86219) [Internet]. Munich Personal RePEc Archive. Available from: https://mpra.ub.uni-muenchen.de/86219/ [14] Gale, W.G., Krupkin, A., Rueben, K., 2015. The relationship between taxes and growth at the state level: New evidence. National Tax Journal. 68(4), 919-941. [15] Ezekwesili, T.P., Ezejiofor, R.A., 2022. Tax revenue and economic growth: A study of Nigerian economy. International Journal of Research in Education and Sustainable Development. 2(3), 10-24. [16] Besley, T., Meads, N., Surico, P., 2014. The incidence of transaction taxes: Evidence from a stamp duty holiday. Journal of Public Economics. 119, 61-70. [17] Adebao, K., 2009. Perceived relationship between exchange rate and economic growth in Nigeria, 1970-2010. American Journal of Humanities and Social Sciences. 1(3), 116-124. [18] Micah, L.C., Ebere, C., Umuobong, A.A., 2012. Tax system in Nigeria-Challenges and the way forward. Research Journal of Finance and Accounting. 3(5), 9-15. [19] Odiambo, O., Olushola, O., 2018. Taxation and Economic Growth in a Resource-rich Country: The Case of Nigeria [Internet] [cited 2021 Apr 26]. Available from: https://www.intechopen.com [20] Ofoegbu, G.N., Akwu, O.D., Oliver, O., 2016. Empirical analysis of effect of tax revenue on economic development of Nigeria. International Journal of Asian Social Science. 6(10), 604-613. [21] Edewusi, D.G., Ajayi, I.E., 2019. The nexus between tax revenue and economic growth in Nigeria. International Journal of Applied Economics, Finance and Accounting. 4(2), 45-55. [22] Amadeo, K., 2020. What is Economic Growth? [Internet]. The Balance. Available from: https://www.thebalance.com/what-is-the-gdp-growth-rate-3306016 [23] Onoja, E.E., Ibrahim, A.S., 2020. Tax revenue and Nigeria economic growth. European Journal of Social Sciences. 3(1), 30-43. [24] Alexander, A.A., Keyi, M.D., Alfa, Y., 2019. Taxation and economic growth in Nigeria: Evidence from autoregressive distributed LAG (ARDL) model. International Journal of Innovative Fiance and Economics Research. 7(4), 143-151. [25] Olaoye, C.O., Ogundipe, A.A., Oluwadare, O.E., 2019. Tax revenue and economic development in Nigeria. Advances in Social Sciences Research Journal. 6(9), 312-321. [26] Ironkwe, U.I., Gbarakoro, N.O.S., 2019. Tax contribution and economic growth in Nigeria. International Journal of Advanced Academic Research Accounting Practice. 5(4), 1-17. [27] Akhor, S.O., Ekundayo, O.U., 2016. The impact of indirect tax revenue on economic growth: The Nigeria experience. Igbinedion University Journal of Accounting. 3(2), 62-87. [28] Onaolapo, S., Aworemi, E.I., Ajala, K., 2013. Impact of value added tax on revenue generation in Nigeria. Quarterly Journal of Economics. 122(19), 729-773. [29] Ogbeide, S.O., 2017. Firm characteristics and tax aggressiveness of listed firms in Nigeria: Empirical evidence. International Journal of Academic Research in Public Policy and Governace. 4(1), 62-75. [30] Asaolu, T.O., Olabisi, J., Akinbode, S.O., et al., 2018. Tax revenue and economic growth in Nigeria. Scholedge International Journal of Management & Development. 5(7), 72-85.

Tags: