The first need of any modern government is to generate enough revenue which is indeed the breath of its nostril” Thus taxation is by far the most significant source of revenue for the government.  The ideas Nigeria’s regard payment of tax as a means whereby government raises revenue on herself at the expense of their sweat. The information for the study was collected using primary and secondary methods of data collection. For the primary data collection, questionnaires, personal observations and oral interviews were used while existing literature relevant to the topic was consulted for the secondary data. The researcher used chi-square statistical model to analyze the data. The findings of this research work includes: that the system of tax administration is deficient which has encouraged tax evasion and avoidance, this is basicallybecause of operational hard wares, lack of honest and train revenue offices as well as the structure of government expenditure programmes.In addition to the above research finding some problems connected with the Nigeria tax system were identified to include the following.The researcher proffer the following recommendations: The competence of tax officials needs improvement through adequate training and provision of suitable working materials and facilities. Government should distributes its social welfare programs in such a way as to provide direct benefit to tax payers.  This makes them believe that the portion of their hard earned money paid for purposes is being effectively utilized by the government. There should be a public enlightenment campaign by the government aimed toward emphasizing on the importance and need to pay taxes a send when due.




One of the major functions of any government especially developing countries such as Nigeria in the provision of infrastructure service such as electricity, pipe-born water, Hospitals, schools, Access roads and as well ensure a rise in per capital income poverty alleviation to mention a few.

For these service to be adequately provided government should have enough revenue to finance them.  The task of financing there enough revenue to financing there enormous responsibilities is one of the major problem facing the government. Given the limited resources of government, there is need to carry the citizens (governed) along hence the imposition of tax on all taxable individuals and companies to augument government’s financial position.  To this end, government have always enacted various tax laws and reforms existing ones to stand the taste of time.  They include: income tax management act (ITMA) companies income tax decree (CITD) joint tax board (JB) etc.

All these are aimed at ensuring adhence to Tax payment and discouraging tax evasion and avoidance.

For the purpose of this study, the researcher would be concerned with the impact of taxation as an aid to the economic development of Enugu state (Nigeria).


The first need of any modern government is to generate enough revenue which is indeed the breath of its nostril” Thus taxation is by far the most significant source of revenue for the government.  The ideas Nigeria’s regard payment of tax as a means whereby government raises revenue on herself at the expense of their sweat.

       It is good to note that no tax can succeed without the tax payer’s co-operation.  Here, we an ask some thought-provoking question such as what takes taxation such a difficult issue?  Why do people feel cheated when it comes to tax? Is government making judicious use of tax payer’s money?

       In view of these questions above this study is going to be carried out to offer solution to them.

       We shall also look at the following issues and offer recommendations.

1.          Problems affecting the successful operation of tax system in Nigeria

2.          How to determine the Assessable income

3.          Process of tax administration to Nigeria


The general objective of the study is to assess the contribution of taxes towards the growth of the Nkanu West  economy.

1.          To examines the relevance of taxation in Nkanu West  

2.          To determine why people feel cheated when it comes to tax

3.          To determine the extent government has been using revenue generated from tax

4.          To make recommendation on the way forward


To enable the researcher test if there exist any correlation between revenue generated from tax and its impact on the Enugu state economy, some statistical model will be issues based on the response from the oral interview carried out and the questionnaires distributed data gathered from here will be used to test the following hypothetical statement (Assumption).    


The Null hypothesis (Ho): revue generated from tax does not make any impact on the economic development in Nkanu West. The alternative hypothesis (HA): Revenue Generated from tax has positive impact on the economic development of Nkanu West .

Hypothesis II

The Null hypothesis (HO): that tax evasion and avoidance do not affect tax revenue.  The alternative hypothesis (HA): that tax evasion and avoidance do affect tax revenue.

Hypothesis III

The Null hypothesis (HO): that revenue generated from tax is so meager compared to revenue from other sources, an such, government can do with tax.

       The alternative hypothesis (HA): that tax is a major not do without tax.


The study will afford us the opportunity to know the roles taxation play in the Enugu state economy’s such roles includes:

1.          Taxation is a major source of revenue to the government

2.          Revenue generated from tax enables government performs its function effectively

3.          Taxation acts as an instrument of Fiscal policy

4.          Taxation also educates Nigerians on the need to continue to pay their tax promptly


From all indications, it can be seen that a research such as this cannot be carried out in one semester. Therefore, the time available is likely going to the extent of the study.  Other likely limiting factors include:

–             Academic work in campus, family problems etc

–             Also the meager funds, available to the researcher may not be enough as well as the risk of hawing to be on the road most frequently to search of relevant materials may likely going to limit the study.

–             Furthermore, the inability of some officials to disclose certain reliable information, which they considered confidential may, also limit the study.

–             Finally, the cost of transportation as a result of the incessant fuel scarcity and consequent rise  in prices may constrain the movement of the writer,

–             Lastly, most of materials that may be needed for this research work are likely  going to the hundred due to dealt of   materials by government staff.


The researcher in carrying out this study will make the following assumption.

1.          That the data that will be used are true and fair figures of taxes actually colected by the Federal government in each year of assessment.

2.          That the data will be authentic and can be retied on for further research works on this topics

3.          That the data is going to form the basis of the research work.


TAX:      A compulsory payment made by individual and firms to the government.

FBRIS:   Federal board of inland revenue services.

PERSONS: It includes  all taxable persons whether it be individual or co-operate bodies.

CITA:     Company income Tax Act

ITMA:     Income Tax Management Act

CITD:     Companies Income Tax Decree

JIB:       Joint Tax Board

CTTD:     Capital Transfer TAX Decree

VAT:      Value Added tax

PPTA:     Petroleum Profit Tax Act

CAMD:    Companies and Allied Matters Decree

PAYE:     Pay As You Earn

TAXBASE: The Object, which is, taxed  e.g. personal income company profit etc

TAXRATE: The rate at which tax in charged

TAX INCITEMENT   : It refers to the effect of and where the burden is finally rested