Capital Gain Tax and Tax Revenue Generation in Nigeria
Keywords:
Capital Gain Tax, Taxation, Total Tax RevenueAbstract
This study examines Nigeria's capital gain tax system and how it affects the country's ability to generate tax revenue. An ex-post facto research design was used in this study, which combines concepts or categories that already have a particular characteristic or aspect and compares them to a particular dependent variable. The research employed an additional source of data. The Central Bank of Nigeria's statistical bulletin and Federal Inland Revenue Service (FIRS) reports with secondary data from 2011 to 2022 were used in this study. Descriptive and regression analytic methods were used to evaluate the data in order to draw well-informed conclusions about the study. The results showed that the 0.919 p-value was higher than 0.05. The results of the study indicate that from 2011 to 2022, Nigeria's tax revenue generation was not significantly impacted by the capital gain tax. As a result, the null hypothesis (Ho), which claimed that the money raised by the capital gains tax had no appreciable effect on Nigeria's overall tax revenue for the good, is now confirmed. In order to ensure that the cost of collection does not exceed the derived value, the null hypothesis suggests that the government incorporate and assess a policy on capital gain tax cost-benefit analysis when handling CGT. In addition, it was recommended that the capital gains tax undergo recurring reviews and adjustments in light of its fixed costs.
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