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Effect Of E-Taxation System On Government Tax Revenue In Nigeria

Author

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  • AKADAKPO BUKOLA ADEFUNKE
  • IMONITIE OSARIEMEN MAYOWA

Abstract

This study examines the effect of e-taxation system on government tax revenue in Nigeria, employing hypothesis testing and regression analysis to explore key influencing factors such as awareness levels, behavioral responses, technological advancements, and demographic variables. The study finds that while there is a statistically significant relationship between awareness levels and the distinction between businesses and individuals, the impact of awareness alone on e-taxation effectiveness is relatively weak. However, positive behavioral responses to e-taxation initiatives significantly enhance government revenue, highlighting the critical role of fostering responsible taxpayer behavior. Technological advancements, such as block chain and digital currencies, show a strong positive correlation with the efficiency and effectiveness of e-taxation systems, this underscores the necessity of ongoing investment in cutting-edge technologies to maintain and improve e-taxation infrastructure. Additionally, demographic factors such as age, education, and income significantly influence the adoption and effectiveness of e-taxation policies. The study recommended that a targeted awareness campaigns segmented by demographics (age, income level, location) and business types should be developed. Also, appropriate communication channels (social media, SMS, workshops) tailored to each segment to ensure clear and effective messaging should be utilized. Focus should be on educating taxpayers about the benefits of e-taxation systems, such as convenience, efficiency, and security. Similarly, initiatives that incentivize timely tax filing, accurate reporting, and efficient utilization of e-taxation platforms should be implemented.

Suggested Citation

  • Akadakpo Bukola Adefunke & Imonitie Osariemen Mayowa, 2024. "Effect Of E-Taxation System On Government Tax Revenue In Nigeria," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 16(2 (July)), pages 221-238.
    • Handle: RePEc:shc:jaresh:v:16:y:2024:i:2:p:221-238
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    References listed on IDEAS

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    1. Torgler, Benno & Schneider, Friedrich, 2009. "The impact of tax morale and institutional quality on the shadow economy," Journal of Economic Psychology, Elsevier, vol. 30(2), pages 228-245, April.
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    More about this item

    Keywords

    e-Taxation; Government Revenue; Nigeria; Behavioral Responses; Technological Advancements; Demographic Variables.;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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