EFFECT OF COMPANY INCOME TAX AND VALUE ADDED TAX ON ECONOMIC GROWTH IN NIGERIA

Abstract

This research center on evaluation of effect of company income tax and value added tax on economic growth in Nigeria was based on objectives which were to examine the effect of company income tax on economic growth in Nigeria and evaluate the effect of value added tax on economic growth in Nigeria. An ex-post facto research design was employed. Auto Regression Distributed Lag (ARDL) analysis was selected to investigate the effect of company income tax and value added tax on economic growth. Secondary data were collected for a period 23 years 2001-2023 from CBN Statistical Bulletin. The finding shows that there is a positive significant effect of company income tax on economic growth. Also, value added tax was found to have a positive and significant effect on the economic growth in Nigeria. Based on these finding, this study recommends that government should enhance the efficiency of CIT administration by adopting digital tax platforms to reduce evasion, improve compliance, and streamline the tax collection process, ensuring that businesses contribute equitably to economic growth. Also, policymakers should ensure that VAT revenues are transparently allocated to critical sectors such as infrastructure and social services to maximize its positive impact on economic growth and public welfare.