The Impact of Corporate Income Tax on Public Investment in the Agricultural Sector in Nigeria

The study examined the effects of corporate income taxes on public investment in Agricultural sector in Nigeria from 1990-2022. The proxies for direct tax include Company Income Tax. The study adopted the ex-post facto research design as data collected were sourced from relevant publications of the Central Bank of Nigeria statistical bulletins, FIRS and National Bureau of Statistics. The independent variable for the study is Revenue from Company Income Tax while the dependent variable is public investment in Agricultural sector. The data were analysed using descriptive statistics and fully modified ordinary least square method in form of multiple regression technique. However, the results of the descriptive analysis showed significant variations of value of performance indices. The result of the regression analysis showed the positive effect of Direct Taxes (DTX) on Public Investment (PI) in agricultural sector in Nigeria. At 1% level of significance, corporate income tax has significant and positive impact on agricultural funding. The significant of these discoveries is essential for policy makers in adopting a smart tax policy that priorities agricultural finance while effectively balancing the needs for other industries and it also enhance their fiscal plans to support sustainable agricultural growth and economic stability by comprehending and resolving the distinct impact of various tax categories on agricultural funding. However, the study recommended that the collaboration between government agencies, agricultural stakeholders, and the private sector should be encouraged to identify and address challenges in tax revenue utilizations.

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Publication Details

Journal
Asian Journal of Economics Business and Accounting
Published
2024-08-16
DOI
https://doi.org/10.9734/ajeba/2024/v24i81468
Primary Topic
Corporate Taxation and Avoidance
Type
article
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article

The Impact of Corporate Income Tax on Public Investment in the Agricultural Sector in Nigeria

Olusegun Peter Ajagun, Maumo Jerry Jinadu, Gabriel Praise Bose
Asian Journal of Economics Business and Accounting
Corporate Taxation and Avoidance
article

The Impact of Corporate Income Tax on Public Investment in the Agricultural Sector in Nigeria

Olusegun Peter Ajagun, Maumo Jerry Jinadu, Gabriel Praise Bose
article en

Abstract

The study examined the effects of corporate income taxes on public investment in Agricultural sector in Nigeria from 1990-2022. The proxies for direct tax include Company Income Tax. The study adopted the ex-post facto research design as data collected were sourced from relevant publications of the Central Bank of Nigeria statistical bulletins, FIRS and National Bureau of Statistics. The independent variable for the study is Revenue from Company Income Tax while the dependent variable is public investment in Agricultural sector. The data were analysed using descriptive statistics and fully modified ordinary least square method in form of multiple regression technique. However, the results of the descriptive analysis showed significant variations of value of performance indices. The result of the regression analysis showed the positive effect of Direct Taxes (DTX) on Public Investment (PI) in agricultural sector in Nigeria. At 1% level of significance, corporate income tax has significant and positive impact on agricultural funding. The significant of these discoveries is essential for policy makers in adopting a smart tax policy that priorities agricultural finance while effectively balancing the needs for other industries and it also enhance their fiscal plans to support sustainable agricultural growth and economic stability by comprehending and resolving the distinct impact of various tax categories on agricultural funding. However, the study recommended that the collaboration between government agencies, agricultural stakeholders, and the private sector should be encouraged to identify and address challenges in tax revenue utilizations.

Asian Journal of Economics Business and AccountingVol. 24(8)
Lagos State University (NG)
Zero hunger
Openalex Percentile: Top 79%
Corporate Taxation and Avoidance
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