TAXES AND ECONOMIC GROWTH IN NIGERIA: THE TRENDS AND CAUSALITY PATTERNS
Abstract
This study investigated the trends and causality patterns between taxes and economic growth using OLS, Graphs, and Pairwise Granger Causality Test. The trend analysis showed that GDP, ET, and WHT exhibit seasonality in trend while PPT, CIT, and VAT exhibit the same trends of constancy, rise and fall, and constancy, and there was no causality between the taxes and GDP. Based on the results, the study recommends that government should use taxes to provide public goods which will give the taxpayers the impetus to pay rather than avoid or evade tax payment and hence have increased revenue generation via taxes.
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