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Information Communication Technology Taxation And Tax Earnings In A Low-Income Economy

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  • Cordelia Omodero

    (Covenant University Ota)

Abstract

Over the years, information and communication technology has made its way into industrialized countries, and through technology transfer, it is also rapidly expanding in less developed ones. These technology advances provide distinct economic benefits to emerging countries such as Nigeria. Aside from market expansion, the advancement of information and communication technology has raised government revenue through the establishment of a specific fee on the revenues of corporations involved in broad technologically based operations. The primary goal of this research is to investigate the influence of national information communication technology development taxation on general tax income in Nigeria. This study covers a period from 2010 to 2019 using data gathered from OECD and FIRS statistics. The dependent variable is the total tax revenue and the predictor variables are the national information technology development levy (NITDL) or tax and trade openness. Using the regression analysis tool, the study finds that NITDL contributes positively and significantly to total tax income at 1% level of significance while trade openness contributes to tax revenue at 10% significance level. Both outcomes are significant and commendable. The policy implication is that the government should support all information communication technology growth in the country for more inflow of international business links and for tax revenue growth in the country. The study recommends stable power supply for effective application of information communication technologies such internet network, website developments and effective operations.

Suggested Citation

  • Cordelia Omodero, 2023. "Information Communication Technology Taxation And Tax Earnings In A Low-Income Economy," Economic Archive, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, issue 1 Year 20, pages 41-54.
    • Handle: RePEc:dat:earchi:y:2023:i:1:p:41-54
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    File URL: http://hdl.handle.net/10610/4753
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    References listed on IDEAS

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    More about this item

    Keywords

    Taxation; ICT; telecommunications; information and technology development;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management

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