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.

Impact of the AFCFTA on Tax Revenue in Togo

Impact of the AFCFTA on Tax Revenue in Togo

by | May 21, 2023 | AMTJ, AMTJ 2023 I1

Impact of the AFCFTA on Tax Revenue in Togo

Authors: Akouété Paulin Bate and 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, 2023 Issue 1, p. 1–19
https://doi.org/10.47348/AMTJ/V3/i1a1

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Bate, A P and Guedikouma, D
Impact of the AFCFTA on Tax Revenue in Togo
African Multidisciplinary Tax Journal, 2023 Issue 1, p. 1–19
https://doi.org/10.47348/AMTJ/V3/i1a1

Abstract

The aim of this study is to examine the impact of the AfCFTA on Togolese tax revenue. The schematic facts and the gravity model applied to data from 51 countries including 41 African countries and 10 non-member countries of the AfCFTA confirm our hypothesis that the AfCFTA positively inf luences imports and exports of goods and services and generates short-term negative effects in the form of loss of tax revenue (customs duties). Thus, the schematic facts show that Togo’s imports of goods and services from African countries increased from 159.76 billion CFA francs in 2019 to 199.71 billion CFA francs in 2021, an increase of 25%. They also show that over the period 2019 to 2021, the customs duties collected amounted to an average of 54.09 billion CFA francs. This study estimates that if AfCFTA legislation had been in force since 2019, Togo would have lost an amount of around 54 billion CFA francs in customs duties. The gravity model estimates also show that AfCFTA would lead to an increase in trade between Togo and its partners and, in turn, an increase in domestic tax revenue of 2.809% and 3.532% respectively. These results urge public decision-makers to promote Togo’s specialisation in the production of goods and services for which it has a comparative advantage. This strategy will enable Togo to produce more goods and services at lower costs in order to sell them within AfCFTA and reduce unemployment.

Impact of the AFCFTA on Tax Revenue in Togo

What Drives the Tax Compliance Levels of Sole Traders in South Africa?

by | May 21, 2023 | AMTJ, AMTJ 2023 I1

What Drives the Tax Compliance Levels of Sole Traders in South Africa?

Authors: Cathrine Thato Koloane, Mangalani Peter Makananisa, Sandisiwe Sityoshwana and Thabisa Tokwe

ISSN: 2709-8575
Affiliations: Senior Specialist: Market Research, National Revenue and Compliance Division, Operational Research Unit at the South African Revenue Service; Specialist: Statistical Support, National Revenue and Compliance Division, Operational Research Unit at the South African Revenue Service; Functional Specialist Research, SMME, Traders and Travellers Segment at the South African Revenue Service; Senior Researcher, SMME, Traders and Travellers Segment at the South African Revenue Service
Source: African Multidisciplinary Tax Journal, 2023 Issue 1, p. 20–44
https://doi.org/10.47348/AMTJ/V3/i1a2

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Koloane, C T, Makananisa, M P, Sityoshwana, S and Tokwe, T
What Drives the Tax Compliance Levels of Sole Traders in South Africa?
African Multidisciplinary Tax Journal, 2023 Issue 1, p. 20–44
https://doi.org/10.47348/AMTJ/V3/i1a2

Abstract

The study examined the drivers of levels of tax compliance of sole traders in South Africa. The study adopted a quantitative research approach where a sample of 500 sole traders was selected from a database of 146 075 active sole traders for the fiscal year 2020/21. A survey questionnaire was used to collect primary data from the participants. Only 194 sole traders responded to the questionnaire, resulting in a response rate of 39 per cent. Descriptive and inferential statistics, as well as multiple linear regression, were used to conduct the analysis. The study revealed that the tax compliance level of sole traders is inf luenced by whether their friends and relatives pay all their taxes and whether they have too much debt, which discourages tax compliance. The study recommended targeted taxpayer education and awareness, tax alleviation measures for sole traders, and government transparency in expenditure management policy, amongst other things. The study makes an important contribution to the body of knowledge in this research area and provides much-needed insights on how to improve the tax compliance levels of sole traders.