Boasting Tax Contribution and Economic Development: Human Development Index Option in Nigeria
Abstract
The aim of this study is to empirically analyse the relationship between boosting tax contribution and economic development: Human Development Index option in Nigeria Times series data on different types of Companies Income Tax, standard of living and Petroleum Profit Tax from 2023 were collected from Central Bank of Nigeria report and Nigeria Revenue Service. Descriptive Statistics, Ordinary Least Square Regression Analysis, Autoregressive Distributed Lag, Cointegration and Error Correction Model was used in analyzing the data collected. The empirical results indicate that companies’ income tax and petroleum profit tax positively and significantly relate to standard of living. The study therefore conclude that boosting direct tax relate to economic development and recommends that part of direc6 tax proceeds should be invented in urban renewal, clean water supply systems, and community recreation spaces to enhance quality of life. Fiscal frameworks should include a health sector allocation formula within petroleum profit tax revenue distribution to ensure consistent funding for preventive health campaigns and primary healthcare accessibility. Government should provide adequate funding for education, health and living standards of the people. This will improve the level of economic development of Nigeria since these are the key indices in evaluating the level of economic development.
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