Authors :
Ezekwere Uzochukwu; Meshach Ifurueze; Dr. Agubata N. S
Volume/Issue :
Volume 8 - 2023, Issue 8 - August
Google Scholar :
https://bit.ly/3TmGbDi
Scribd :
https://tinyurl.com/3zz9cjuh
DOI :
https://doi.org/10.5281/zenodo.8308216
Abstract :
This study focused on the effects of tax
systems on economic growth of Nigeria and South Africa
SA, from (2001-2021). The study used Ex-Post Facto
research design. The population of the study included all
African countries; while the sampling methods
embraced purposive sampling techniques that selected
only Nigeria and South Africa because of the similarities
in both countries tax systems and economic growth.
Secondary data was used sourced from World Bank
Data, CBN statistical bulletin, Federal Inland Revenue
(FIRS) from Nigeria, and South African Revenue
Services (SARS), from (2001-2021). The statistical tools
applied was a cross-sectional multi-liner regression,
which included pre-analyses tests such as: Descriptive
Statistics, Pearson Correlation, Unit Root, Co-
integration Test and Error Correction Model. After the
analyses: the adjusted R-squared value for both
countries respectively show that all the independent
variables jointly have the power to explain about 78%,
58% of the systematic variation found in RGDP of
Nigeria and South Africa, while the balance of 22%,
42%, are the stochastic elements in endogenous and
exogenous variables affecting both tax system not
captured in the study VAT is positive and non-
statistically significant in Nigeria, while it is positive and
statistically significant in South Africa; both Nigeria and
South Africa. Stamp and excise duties are positive and
non-statistically significant; again in Nigeria, CGT is
negative and statistically significant, while in South
Africa it is positive and non-statistically significant.
Therefore, it is recommended that administrator of tax,
can improved in tax collection and avoidance in both
countries; the insignificant of VAT GDP can be avoided
through transparency in administrations. Also,
governments of both countries should encourage
domestic and foreign operations to increase capital gain
tax and ensure adherence on the withholding tax laws.
Keywords :
Tax system Value Added Tax(VAT),Economic Growth, Nigeria and South Africa.
This study focused on the effects of tax
systems on economic growth of Nigeria and South Africa
SA, from (2001-2021). The study used Ex-Post Facto
research design. The population of the study included all
African countries; while the sampling methods
embraced purposive sampling techniques that selected
only Nigeria and South Africa because of the similarities
in both countries tax systems and economic growth.
Secondary data was used sourced from World Bank
Data, CBN statistical bulletin, Federal Inland Revenue
(FIRS) from Nigeria, and South African Revenue
Services (SARS), from (2001-2021). The statistical tools
applied was a cross-sectional multi-liner regression,
which included pre-analyses tests such as: Descriptive
Statistics, Pearson Correlation, Unit Root, Co-
integration Test and Error Correction Model. After the
analyses: the adjusted R-squared value for both
countries respectively show that all the independent
variables jointly have the power to explain about 78%,
58% of the systematic variation found in RGDP of
Nigeria and South Africa, while the balance of 22%,
42%, are the stochastic elements in endogenous and
exogenous variables affecting both tax system not
captured in the study VAT is positive and non-
statistically significant in Nigeria, while it is positive and
statistically significant in South Africa; both Nigeria and
South Africa. Stamp and excise duties are positive and
non-statistically significant; again in Nigeria, CGT is
negative and statistically significant, while in South
Africa it is positive and non-statistically significant.
Therefore, it is recommended that administrator of tax,
can improved in tax collection and avoidance in both
countries; the insignificant of VAT GDP can be avoided
through transparency in administrations. Also,
governments of both countries should encourage
domestic and foreign operations to increase capital gain
tax and ensure adherence on the withholding tax laws.
Keywords :
Tax system Value Added Tax(VAT),Economic Growth, Nigeria and South Africa.
