ABSTRACT
This research work on tax incentive as a catalyst for industrial development and economic growth in Nigeria was primarily undertaken to evaluate the effectiveness of tax incentives in developing the Nigerian economy, the extent to which individuals and companies have been responding to the incentive scheme, and how these incentives have been stimulating and motivating these bodies on employment opportunities. The researcher also intends to examine how these incentives has helped the existing industries and firms in expanding their areas of operation and to know if the aim of granting these incentives are being achieved by the government and implemented by the beneficiaries. An empirical study using a well structured questionnaire to assess the relationship that exists between tax incentives, industrial development and economic growth using four different incorporated industries and firms in Portharcourt, Rivers state having considered the type of incentives offered to them by the government. A total number of seventy-five (75) questionnaires were specifically administered to the top and middle management staff (CEO’s managers and Accountants) of these industries and firms and a total number of (60) sixty were retrieved. The hypothesis formulated were tested using the chi-square (X2) method and it was discovered that the tax incentives granted were inadequate to sustain the desired development for which it was granted. Finally, recommendations were made as regards variables which will enhance tax incentives towards industrial development and economic growth.
TABLE OF CONTENTS
CHAPTER ONE
Introduction
1.1 Background of the Study
1.2 Statement of Problem
1.3 Purpose of the Study
1.4 Significance of the Study
1.5 Scope of the Study
1.6 Limitation of the Study
1.7 Hypothesis Formulated
1.8 Definition of Terms
References
CHAPTER TWO
Introduction
2.1 Criticism of Tax and Incentive Scheme
2.2 Argument for Tax Incentive
2.3 The Impact of Tax Incentives
2.4 Petroleum Profit Tax Act
2.5 Capital Allowance
2.6 Companies Income Tax Act
2.7 Industrial Development (Income Tax Relief) Act
2.8 Other Tax Incentives in Nigeria
References
CHAPTER THREE
Introduction
3.1 Research Design
3.2 Sources of Data
3.3 Population of the Study
3.4 Sampling Method
3.5 Validity of Instruments
3.6 Reliability of Instruments
3.7 Data Analysis Technique
CHAPTER FOUR
Date Presentation and Analysis
Introduction
4.1 Data Presentation
4.2 Data Analysis
4.3 Research Question Analysis
4.4 Test of Hypothesis
CHAPTER FIVE
Summary of Findings, Conclusion and Recommendations
5.1 Summary of Findings
5.2 Conclusion
5.3 Recommendations
Bibliography
Appendices
PROPOSAL
This research work intends to examine tax incentives as a catalyst for industrial development and economic growth in Nigeria. It also seek to evaluate the extent to which individuals and companies have been responding to the incentive scheme, show how these incentives have been helping existing industries and firms in expanding their areas of operation and to know if the expected result of these incentives are achieved by the industries and firms who benefit from these reliefs using four industries and firms located at Portharcourt, in Rivers state having considered the type of incentive being offered to them by the government.
In pursuance of this research study, data will be gathered from the income Tax Management Acts, Newspapers, Libraries, Journals and questionnaires.
Some challenges that will be faced by the researcher in the course of carrying out this study include financial and time constraint, unco-operative attitude of the respondents, irrelevant or unreliable information obtained from oral interviews and that of getting an exeat from the school authorities. Finally, recommendations will be made from the summary of findings and conclusion of which if implemented by the tax experts, consultants, individuals, and economic analysts, will enhance the overall aim and performance of the tax incentive scheme towards industrial development and economic growth.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Tax studies have become increasingly sophisticated especially during the past decade and have yielded conflicting results as regards the tax matter. Some studies focus on the cost and benefit of tax incentives while a few look at whether public funds could have been better spent or if tax incentives were economically justified. Tax studies offer little guidance to policy makers who are concerned about tax rates or tax offerings and the effectiveness of employing tax incentives as an economic and developmental
tool.
The mode by which industrial development and economic growth can be effectively, efficiently, stimulated and developed is very demanding. As a result of this, the government charges less tax and gives tax holidays in order to encourage investments and economic activities in those areas which help to improve production capabilities, activate economic growth as well as the allocation of resources in a socially desirable manner.
Investors often emphasize on the relative importance of a good tax system in investment decisions compared with other considerations such as political and economic stability, availability of social infrastructure, security of the life and property and also the general cost of doing business and so on. To the prospective investor, the general feature of a tax system (tax base rate) is more important than the tax incentives in many developing countries. The tax laws are not clearly written and may be subject to frequent review which makes long-term planning difficult for businesses and add to the perceived risks of undertaking major capital intensive projects.