TAX REVENUE AND PER CAPITAL INCOME IN NIGERIA AND GHANA

Abstract

The study determined the effect of tax revenue on per capital income in Nigeria and Ghana, using company income tax and value added tax. Ex Post Facto was employed for the study. Data were extracted from international monetary fund (IMF), as well as the Federal Inland Revenue (FIRS) for Nigeria and Ghana Revenue Services (GRS) from 2000 to 2024. Multiple regression was employed to test the data and the study revealed that the company income tax had a positive coefficient of 301.8848 and a p-value of 0.272 which was not significant at 5% level for Nigeria; while the outcome of model 2 showed a negative coefficient of -170.7067 (p-value 0.000) for Ghana, but has a significant effect. The study also showed that value added tax had a positive coefficient of 320.8032 and a p-value of 0.017 which was significant at 5% level for Nigeria; while the outcome of model 2 showed a positive coefficient of 4.139567 (p-value 0.293) for Ghana, but has no significant effect. There is need for Nigerian government to qualifying companies in priority sectors get credits tied to investments in equipment, infrastructure and expansion instead of full holidays.