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Tax Alignment Besides Fiscal Progression: Contemporary Margin

Nicholas Obun Dan, Oboh John Ogenyi and Inyang Ochi Inyang

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Dan, N.O., Ogenyi, O.J. and Inyang, I.O., 2021. Tax Alignment Besides Fiscal Progression: Contemporary Margin. United International Journal for Research & Technology (UIJRT), 2(7), pp.10-17.

Abstract

Every organization is saddled with responsibilities and the responsibilities can only be achieved when the sources available to finance the operations are properly planned. The government as an umbrella that the citizens dwell also has the duties to make provisions for defense, educational facilities, maintenance of law and order, and construction of good roads. Private sector cannot conveniently provide these facilities due to the huge amount involve in providing these infrastructures. For the government to actualize these goals, revenues remain the prerequisite to propel the government to meet the obligations to the citizens. The government has made several reforms in recent years with the aim of enhancing revenues and amending areas that have loopholes in the tax system. The study concentrated on tax alignment besides fiscal progression: contemporary margin. The main objective of the study was to establish the cause-effect link amongst the constituents of the tax alignment and fiscal progression evidence from Nigeria. Ex-post facto design was adopted and data obtained were analyzed using regression method. The results of the analysis revealed that only petroleum profit tax amongst the indicators of tax alignment, significantly affects fiscal progression, as result of the copious dares threatening the tax alignment. But corporate income tax; value added tax as well as custom and excise duties do not significantly influence fiscal progression as evidence in Nigeria within the period under examination. It was concluded that it is necessary for the government to reconsider and assess tax laws and regulations that are deterrent to the proper functioning of the tax alignment so as to wedge and discourage the openings that are being ill-used by tax payers to either evade or avoid tax payments. Bureaucrat should further ensure that tax revenues are patently and prudently employed for wealth creation and in providing of substructures and public goods and services in order to fast-track fiscal progression.

Keywords: Alignment, Contemporary, Fiscal, Margin, Progression, Tax.

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