Comparative Effect of Tax Revenue on Economic Growth of Selected African Countries
- 1. Department of Accounting, Faculty of Social and Management Sciences, Clifford University, Owerrinta, Abia State, Nigeria
- 2. Department of Financial Management Technology, School of Management Technology, Federal University of Technology, Owerri, Imo State.
Description
Tax revenue is often seen as a substitute of sustainable financing within a steady and predictable fiscal setting to promote economic growth and guarantee government financing of social and infrastructural needs of the citizenry. The objective of the study is to examine the effect of tax revenue on economic growth of ten selected countries from the five sub-regions of Africa such as West Africa, Southern Africa, North Africa, Eastern Africa and Central Africa. The study applied multiple OLS regression techniques as a statistical tool of analysis. The study reveals CIT, PIT, CED and VAT as a whole do not significantly affect the GDP of Botswana, Cameroun, Tunisia, DR/Congo, Egypt, Ghana, Kenya, Nigeria, and Uganda. On the contrary, CIT, PIT, CED and VAT as a whole have significant effect on gross domestic product of South Africa. The study recommended among others that African countries should introduce and maintain policies that will boost the continual and sustainable growth in tax revenue from custom and excise duty, personal income tax, company income tax and value added tax which are progressive in nature and ensure that tax revenue generated are adequately utilized to ensure sustainable economic growth.
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References
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