Iii) to examine the role of taxation for economic development of nigeria iv) to find out the importance of taxation in the development of an economy through proper use of its tools v) to make possible recommendations based on the findings of this research work. Role of fiscal policy on economic growth in sudan during the period 1996-2012 for this purpose we choose gdp as represents of economic growth and government expenditure and taxation as represent of fiscal policy. This paper provides a self-contained introduction to the economic modelling of growth and reviews the theoretical evidence on the extent of the link between taxation and growth. Taxation and economic growth in china on the role of the tax system in the development process fifteen years ago, as discussed in more detail in section 2, the chinese tax system was typical of those in the poorest countries the main source of tax revenue for the national.
Tax cuts and economic growth exaggerated claims for the economic growth benefits of large tax cuts have been around since the emergence of supply-side economics in the late 1970s and persist to this day. Khan, urooj and nallareddy, suresh and rouen, ethan, the role of taxes in the disconnect between corporate performance and economic growth (june 2017) columbia business school research paper no 16-6 harvard business school accounting & management unit working paper no 18-006. Economic growth is the basis of increased prosperity this makes the attainment of growth a key objective for governments across the world the rate of growth can be affected by policy choices through the effect that taxation has upon economic decisions and through productive public expenditures.
Development in nigeria maria chinecherem uzonwanne department of economics, nnamdi azikiwe university, awka, anambra state, nigeria and that the ability of tax to stimulate economic growth or development in nigeria will result from the deliberately regimes that will designed citizens in knowing the indispensable role of tax in. Abstract 1 p roblems of taxation, in connection with economic development, are generally discussed from two different points of view, which involve very different, and often conflicting, considerations: the point of view of incentives and the point of view of resourcesthose who believe that it is the lack of adequate incentives which is mainly responsible for insufficient growth and. Economic growth economic growth is the percentage increase in real national output in a given time period or the increase in the productive potential of the economy countries grwo at different rates, this is partly due to the fact that they are at different stages of their economic cycle. A higher average tax burden reduces state economic growth dividing total tax revenue by gross state product (gsp) shows that a 1 percent increase in a state’s average tax rate is associated with a decrease of 19 percent in the growth rate of its gsp. The income tax’s central role in revenue generation, its impact on the distribution of after-tax income, and its effects on a wide variety of economic activities.
The role of value added tax on economic growth of ethiopia the achievement of economic growth is crucial for countries sustainable development recently, value added tax (vat) becomes a major worldwide tax instrument which enhances economic growth. Why taxes affect economic growth september 10, tax policy mirrors our view of the role of government in everyday life and parallels the level of spending and the diversion of resources to the. High marginal tax rates can discourage work, saving, investment, and innovation, while specific tax preferences can affect the allocation of economic resources but tax cuts can also slow long-run economic growth by increasing deficits. Most governments in the world are striving to attain long term growth and economic development with taxation as one of the major tools however, it is necessary to know which components of tax are. Taxation has a key role in a modern economy listed below are the ways in which governments can use taxation in a modern economy:- revenue generation: – taxation is used by the government to raise revenues for its operations, infrastructure, welfare, education defense (carnell, 2010.
Supply-side economics is a macroeconomic theory arguing that economic growth can be most effectively created by lowering taxes and decreasing regulation according to supply-side economics, consumers will then benefit from a greater supply of goods and services at lower prices and employment will increase it was started by economist robert mundell during the ronald reagan administration. The impact of taxation on nigeria economy growth review of related literature introduction there are several literatures by different authors, scholars and researchers on taxation as source of government revenue and its impact on nigeria economy. The role of taxation in the economic re-growth deutsch - austrian-swiss tax congress vienna, march 18, 2011 ladies and gentlemen, thank you for the invitation to address the german austrian swiss tax-kongress and exchange views on eu tax policy 2020 this is a welcome occasion to discuss with an assembly of tax practitioners in an open and. The result suggests that tax revenue exerted a positive and statistically significant effect on economic growth both in the long-run and short-run implying that tax revenue enhances economic growth in ghana.
Both taxes are essential to promote economic growth, fill employment and economic stability direct and indirect taxes should side by side & balance each other however in developing countries, direct taxation has limited scope and hence indirect taxation plays a more significant role. Acceleration of economic growth: tax policy may be used to handle critical economic situation like depression and inflation in depression, tax is set to increase the consumption and reduce the savings to increase the aggregate demand and vice verse. Taxation and long-term economic growth belongs judd (1985), chamley (1986), barro (1999) or king and rebelo (1990) who used the neoclassical growth model with physical capital, or two- sector growth model with human and physical capital. Pro-growth tax reform that reduces the burden of corporate and personal income taxes would generate a more robust economic recovery and put the us on a higher growth trajectory, with more investment, more employment, higher wages, and a higher standard of living.
Myles (2007) try to highlight the role of taxation in particular on economic growth based on econometric models this study was an econometric modeling of economic growth rate, using various. H0: taxation as a tool does not aid economic development of nigeria hypothesis 2: h0: taxation does not play any role for economic growth and development in nigeria 16 significance of the study the essence of this research work is to examine taxation as a tool for economic development of nigeria. Impact of taxation on economic growth, it is necessary to realize that taxation can be integrated into growth theories only through its impact on individual growth variables (kotlán, 2010 kotlán, machová and janíčková, 2011. Abstract the development of endogenous growth theory has provided many new insights into the sources of economic growth the essence of the new theory is that growth is a consequence of rational economic decisions.
The role of value added tax in the economic growth of pakistan bilal hassan related information 1 department of inland revenue, directorate of intelligence & investigation (ir), jail road, faisalabad, pakistan.