Thesis Abstract

Abstract
Taxation is a crucial instrument that governments utilize to generate revenue for various developmental projects and to redistribute resources within the economy. This research delves into the significance of taxation as a tool for fostering economic development. The study explores how tax policies impact economic growth, income distribution, and overall prosperity within a country. By examining the role of taxes in shaping economic behavior, this research aims to shed light on the intricate relationship between taxation and development. It investigates how different types of taxes, such as income tax, corporate tax, value-added tax, and property tax, influence investment decisions, consumption patterns, and savings rates. Moreover, the study delves into the effectiveness of tax incentives in promoting specific industries or activities that align with the government's development objectives. Furthermore, the research analyzes the concept of tax justice and its implications for sustainable development. It examines the importance of a fair and transparent tax system that minimizes loopholes and ensures that all citizens contribute their fair share towards public goods and services. The study also investigates the role of international taxation in combating tax evasion and illicit financial flows that undermine the development efforts of countries, especially in the Global South. Additionally, the research considers the impact of taxation on income inequality and poverty alleviation. By redistributing resources from the wealthy to the less affluent through progressive tax systems and social welfare programs funded by tax revenues, governments can reduce disparities in wealth and enhance social cohesion. The study evaluates the effectiveness of such redistributive policies in promoting inclusive growth and reducing poverty rates. Moreover, the research examines the challenges and opportunities associated with tax administration and compliance. It analyzes the importance of efficient tax collection mechanisms, taxpayer education programs, and anti-corruption measures in enhancing revenue mobilization and ensuring the effectiveness of tax policies. By addressing these challenges, governments can strengthen their fiscal capacity and create a conducive environment for sustainable development. In conclusion, this research underscores the critical role of taxation as an instrument of development. By designing and implementing sound tax policies that promote economic growth, reduce inequality, and enhance social welfare, governments can leverage taxation to advance their development objectives and improve the well-being of their citizens.

Thesis Overview

Tax can be defined as a leery, which government imposes on the income of the citizens of a state for which government makes no direct benefits to the taxpayers. It is also an impose by a state on persons who are resident or who earn income within the state. It may take the form of a direct or indirect tax. Generally speaking, a tax is said to be direct where the payment of the tax and the burden fall on the same person; it is indirect where the impact falls on one person and the incidence on another person. Most government in Nigeria depends on tax revenue generalization. The revenue generated is used for economical, political and cultural development. Development according to dictionary meaning is the process of having many industries and a complicated economic system in the society.

Development here is the instrument of positive change that enhances the standard of living of people in the state. Such changes as creation and utilization of serviceable social amenities, reduction in crime, increase in skill and capacity, better organization, good and efficiency and reduction of cost, to mention a few. When a state is label to manage its affairs as stated above, such a state is said to have achieved development. That is they have achieved all round source in its administration. Therefore, development means an increase in the real Gross National product (GNP) over periods in an economy of the state. But more often, development is judge by the significant change in the provision of infrastructures like good roads, effective transport and communication system, public health, education, good water supply amenities. All these help to increase the standard of living of the people. So development is the capacity to deal with environment in order to provide all necessities that will enhance the standard of living of the people. Such things as good laws tax and monetary policies good and efficient management of the economy, provision of infrastructure and utilizes are all measures of development.

Most states in Nigeria at present are under developed. It is even worst than in most states because it is newly formed and therefore needs a lot of money for its development. Before creation of state, governmental facilities were lacking. Like lacking of good road, efficient public health, good and effective communication system, and good education system. Some development have occurred and so the researcher wants to know the impact of tax on the government achievement as well as know the efficient use of tax is judged by the extent the entire people including private firms and house holds benefit from it. Enhanced capital formation, which signifies development is achieved through tax. But recently the Nigerian government has introduced a lot of changes in the tax system that little or nothing is being paid as tax by a worker on a salary level of ten thousand naria per annum. In the pay as you earn system (PAYE) personal allowance is now three thousand naria Phi’s fifteen percent of earned income. There is also children allowance of one thousand five hundred naira per child for maximum of four children dependent relative allowance of one thousand naira and insurance allowance which is actual amount, paid as premium. Apart from the above, five thousand and naira of earned income is tax-free. From the above, one wonders if tax is the major source of government finding.

1.2 STATEMENT OF PROBLEM

In recent years there has been wide spread concern about the rate at which development has been taking place in some created states in Nigeria. The major problem concerning this study is therefore to establish the linkage between tax as an internal source of find and the rate of development in some created states.