Finance act 2020 and its impact on Nigeria tax revenue generation

Taxation is one of the essential sources of a country’s revenue generation. Therefore, certain regulations and policies is needed to be put in place to foster it. The objective of this study was to examine the impact of ‘Finance act 2020 on Nigeria Tax Revenue Generation. Finance Act was measured using Company Income Tax (CIT), Personal Income Tax (PIT) and Value Added Tax (VAT) while Nigeria Tax Revenue Generation was measured using the Total Tax Collected. The study adopted ex-post facto research design. Data was obtained from the Federal Inland Revenue Service. The data was analyzed using E-views 9.1 under which Descriptive statistics was used to establish the relationship between the independent variables and the dependent variable. Regression Analysis was also used in the analysis. The data was also subjected to test for normality and stationarity. It was discovered that the amended Company Income Tax and amended Value Added Tax had a positive and significant influence on the Total Tax Collected by the Government. It was also found that the amended Personal Income Tax had a negative and no significant influence on the Total Tax Collected. Recommendations from this study include that the Government should critically examine the regulations they come up with before enforcing it. This study also recommends that the Federal Inland Revenue Service, the department saddled with the responsibility of tax collection, should review the tax system and policies with the aim of plugging loopholes in the existing tax system thereby preventing citizens from evading and avoiding taxes.