South Asian Journal of Finance
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Item Do the Consequence of Taxation Impact Household Consumptions in Nigeria? Absolute Outcome from Autoregressive Distributed Lag (ARDL)(Department of Finance, University of Kelaniya., 2023) Adegbite, T. A.Purpose: This study investigated taxes’ effect on household consumption expenditure in Nigeria. Taxation was examined through Petroleum Profit Tax, Company income Tax, Value Added Tax, and Customs and excise duties while household consumption expenditure was proxied with the aggregation of households’ expenditure expended on daily needs and procurement of others useful products. Design/Methodology/Approach: The established data are sourced through Central Bank of Nigeria statistical bulletin and annual reports of federal Inland Revenue for a period of 31 years, spanning from 1990-2021, in order to examine the effect of taxation on household consumption expenditure in Nigeria. To achieve the motive behind this study, Autoregressive distributed lag Model, unit root test, Cointegration Test, correlation analysis, lag selection test, and regression, as well as normality test and stability test, were also involved as post-analysis confirmatory tests. Findings: It was discovered that Petroleum Profit Tax has significant, strong, and positive influence on household consumption, but Company income Tax, Value Added Tax, and Customs and Excise duties have negative significant influence on household consumption. Conclusively, taxes have a negative effect on household consumption expenditure in Nigeria. Originality: Having critically reviewed the existing studies, it was invariably realized that none of the extant studies examined how taxes influence household consumptions in Nigeria, their studies were confined to taxation effect on economic growth, investment, inflation, and government expenditure. Hence, this study incorporated Autoregressive distributed lag (ARDL) Model to analyze the effect of taxes on household consumption in Nigeria which made the study unique among the existing studies.Item Tax Implication on Recurrent Expenditure and Internally Generated Revenue: Analysis on Southwestern States, Nigeria(Department of Finance, University of Kelaniya., 2022) Adegbite, T. A.; Ishola, S.Purpose: This study examined internally generated revenue impact on recurrent expenditure performance in Southwest Nigeria. Internally generated revenue was captured with the aggregation of personal income tax, road tax and direct assessment tax while recurrent expenditure performance was proxied with expenditures expended on recurrent expenditure. Design/Methodology/Approach: Data realized from published annual bulletins of all the States’ Board of Internal Revenue and Statistical Year-Book in Southwestern Nigeria were analyzed using Panel data analysis. Findings: Panel data outcomes showed that personal income tax has a positive but insignificant effect on recurrent expenditure, but the direct assessment has a positive and significant effect on recurrent expenditure. Also, road tax was found to exert a positive but insignificant effect on recurrent expenditure in Southwest, Nigeria. Conclusively, it was established that there was a statistically significant effect of internally generated revenue on recurrent expenditure in Southwestern states, Nigeria. Originality: Having reviewed extant literature, it has been discovered that the existing literature was either restricted to one state or local government in a single state. Also, the methodology employed by the extant literature collecting and analyzing the data were primary data and regressions respectively. Therefore, this study extended its projection to all six southwestern states in Nigeria for effective determination of the impact of IGR on recurrent expenditure. Also, this study involved all components of panel data analysis to deep out the effect of IGR on recurrent expenditure which jointly ignited research gaps in the study as against the extant literature.