Effects of the Macroeconomic Environment, Policy and Administrative Measures on Revenue Performance: The Case of Nigeria (2010–2021)

by | Jul 3, 2024 | AMTJ, AMTJ 2024 I1

Effects of the Macroeconomic Environment, Policy and Administrative Measures on Revenue Performance: The Case of Nigeria (2010–2021)

Authors: Zainab Sindigawo Mohammed*, Olakunle O. Oke†, Muhammad Salisu Aminu‡, Aisha Mahmoud Hamman§, Joy Agbo Ojobo¶

ISSN: 2709-8575
Affiliations: * PhD (Sud), MA (Nig), PGDE (Nig), BA History (Nig); Federal Inland Revenue Service (FIRS), No.16, Annex 2, Sokode Crescent, Wuse Zone 5, Abuja, Nigeria, Department of Research and Statistics, † BSc, Information Systems Science; FIRS, Department of Research and Statistics; Université d’Abomey-Calavi, Benin, ‡ BSc, Economics; FIRS. Department of Research and Statistics, § PhD, MSc, MBF, BSc, CAN, ACTI; FIRS, Department of Research and Statistics, ¶ BSc, Economics; FIRS, Department of Research and Statistics
Source: African Multidisciplinary Tax Journal, Volume 4, Issue 1 (2024), p. 249–264
https://doi.org/10.47348/AMTJ/V4/i1a13

Abstract

This study examines the impact of specific macroeconomic variables on tax revenue performance in Nigeria. Utilising quarterly time series data from 2010 to 2021, sourced from various secondary references, the study employs a variance inflation factor (VIF) test to check for multicollinearity. The analysis is conducted using a multiple regression model. The findings indicate that the gross domestic product (GDP) has an insignificant positive effect on tax revenue in Nigeria. Conversely, the inflation rate and employment negatively affect tax revenue generation, although the influence of unemployment on tax revenue is statistically insignificant. The f-statistic value of the model confirms that the combination of the variables studied significantly impacts tax revenue. Therefore, the study concludes that macroeconomic variables are crucial determinants of tax revenue generation in Nigeria. It recommends that the Nigerian Revenue Authority should take measures to strengthen the relationship between GDP and tax revenue.

Does Tax Promote Industrial Development in Africa?

by | Jul 3, 2024 | AMTJ, AMTJ 2024 I1

Does Tax Promote Industrial Development in Africa?

Authors: Akouété Paulin Bate*, Doouda Guedikouma†

ISSN: 2709-8575
Affiliations: * Docteur en économie, Chargé de la planification stratégique à la Direction des études et de
la planification stratégique de l’Office Togolais des Recettes (OTR), † Inspecteur des impôts, Chef section de vérification à la Direction des grandes entreprises de l’Office Togolais des Recettes (OTR).
Source: African Multidisciplinary Tax Journal, Volume 4, Issue 1 (2024), p. 265–291
https://doi.org/10.47348/AMTJ/V4/i1a14

Abstract

This research mainly examines the effect of taxation on industrial development in Africa using group average and aggregate group models with correlated common effects on a panel of 39 African countries over the period 1983-2020. Our results suggest that in the short term, taxation does not affect industrial development, but does affect industrial development in the long term. Thus, in the long term, a tax pressure rate lower than 33.88% would favor industrial development, on the other hand a tax pressure rate higher than 33.88% would disadvantage industrial development. It also emerges from our results that economic activity, financial development, the quality of institutions, gross fixed capital formation and foreign direct investment are the channels through which taxation affects industrial development in the long term. This study urges African states to adopt tax policies aimed at improving these channels.

Determinants of Implicit Tax in Kaduna State, Nigeria

by | Jul 3, 2024 | AMTJ, AMTJ 2024 I1

Determinants of Implicit Tax in Kaduna State, Nigeria

Authors: Alhasan Usman*, Aisha Musa Bindawa†, Bilkisu Inuwa Jibril‡

ISSN: 2709-8575
Affiliations: * PhD; Federal Inland Revenue Service, Nigeria, † Federal Inland Revenue Service, Nigeria, ‡ Federal Inland Revenue Service, Nigeria,
Source: African Multidisciplinary Tax Journal, Volume 4, Issue 1 (2024), p. 292–316
https://doi.org/10.47348/AMTJ/V4/i1a15

Abstract

This paper investigates the impact of the tax compliance rate and corruption perception on implicit tax in Kaduna State, Nigeria. Data was collected through questionnaires and analysed using Endogeneity, Breusch-Pagan-Godfrey heteroskedasticity and Variance Inflation Factor tests. A Two Stage Least Square Regression Model was used to analyse the data, involving 523 questionnaires. The study found that income levels, corruption perception and public confidence in government have a significant positive impact on implicit tax in the state, and the tax compliance rate has an insignificant negative impact on implicit tax in the state. The study concluded that corruption is the main factor affecting the ability of the Kaduna State government to provide adequate public services in the state, and corruption increases the level of implicit tax. The Kaduna State government should make fighting corruption a priority, as this will help the government to save more, and to provide more public goods and services in the state.

The Effect of Regional Electronic Cargo Tracking Systems on Cargo Safety at the Kenya Revenue Authority

by | Jul 3, 2024 | AMTJ, AMTJ 2024 I1

The Effect of Regional Electronic Cargo Tracking Systems on Cargo Safety at the Kenya Revenue Authority

Author: Carolyn Gitegi Wakuka

ISSN: 2709-8575
Affiliations: Kenya Revenue Authority
Source: African Multidisciplinary Tax Journal, Volume 4, Issue 1 (2024), p. 317–343
https://doi.org/10.47348/AMTJ/V4/i1a16

Abstract

The Regional Electronic Cargo Tracking System (RECTS) was adopted by the Kenya Revenue Authority (KRA) to enhance cargo security and boost revenue collection. RECTS is aimed at addressing inefficiencies in vendor-operated Electronic Cargo Tracking Systems (ECTs) whose geo-fence routes can be manipulated, making it challenging to determine the exact location of the cargo. Their failure to send alerts on seal tampering and diversions has resulted in a substantial loss of revenue. This study sought to assess the impact of RECTS on cargo security with a focus on KRA customs operations. The study addressed the impact of RECTS cargo tracking on cargo security, the impact of RECTS cargo monitoring on cargo security, and the measurement of the impact of RECTS real-time response on cargo security at KRA. The research adopted a descriptive research design. The target population for this study was the 140 Rapid Response Units (RRU) and the Cargo Monitoring Unit (CMU) staff working at the five designated RRU stations along the Northern Corridor. Stratified simple random sampling was used to select 104 KRA staff to participate in the study. The primary data was collected by means of a self-administered questionnaire provided to the staff working at the five designated stations. Secondary data was collected from the records of the Cargo Monitoring Unit on incidents of theft, tampering and damage of cargo. The data was analysed using SPSS to compute descriptive and inferential statistics. The study established that the independent variables of cargo tracking, cargo monitoring and real-time response, significantly influence the dependent variable as they account for an 82.90 per cent variation in cargo security. The results of a multiple regression analysis established that cargo tracking has a positive and significant effect on cargo security (β1=0.873, p=0.000); that cargo monitoring has a positive and significant effect cargo security (β2=0.175, p=0.015); and that real-time response has a positive and significant effect cargo security (β3=0.222, P=0.000). The findings of the study revealed that cargo tracking enhances the security of the cargo by deterring cases of cargo diversion and by providing the exact location of the stolen, damaged or tampered cargo enabling the Rapid Response Unit to locate the cargo and resolve the situation immediately. Cargo monitoring enhances cargo security by providing real-time alerts in respect of cargo seal tampering which minimises the tampering that previously occurred during changeover of seals at border points. Additionally, real-time response enhances the security of cargo by reducing the time taken by the Rapid Response Unit to respond to and resolve cases of theft, tampering and cargo accidents during transit.