Direct Taxes and Agricultural Finance

Abstract

Research background: Food production financing in Nigeria has been a source of concern for many years, causing the entire country to experience intense food insecurity as a direct consequence of entirely unnecessary insensitivity to what is needful at a time. This research took all of these misgivings into consideration and aims to figure out the degree to which direct taxes could alleviate this pressure by earmarking more direct tax receipts to farming activities. Purpose: The major and particular objective of this study is to investigate the effect of direct taxation on agricultural financing in Nigeria. For this research, direct taxes such as the hydrocarbon tax, taxable income of individuals, and corporate income tax are used. Research methodology: The evaluation is carried out by collecting secondary data from the Organization for Economic Cooperation and Development (OECD) on selected direct taxes and agricultural outlay from the Central Bank of Nigeria’s Statistical Bulletin. The study runs from 2012 to 2021. The research utilizes a multiple regression strategy. Result: The findings demonstrate that all of the direct tax types examined have a negligible impact on agricultural funding. This leads to the suggestion that Nigerian tax rules be modified to allow for a significant use of tax revenue for agriculture. Novelty: Investigations on agricultural financing through tax receipts have been scarce. This study adds to the small amount of literature in this area and has empirically established the need for an emerging nation to have a tax system that will meet the investment requirements of agricultural productivity.

Fiscal Policy Option for Abatement of Free Rider Society: The Role of Institutional Quality in Nigeria

“…Besides, government revenue leakages can be reverse through good tax administration achievable through institutional quality. Cordelia et al alluded the factors of effectiveness and efficiency in tax administration as having an increment changes in the revenue generated by government; which helps the government in the provision of amenities for citizens and even execution of capital projects [32]. Revenue generation and public spending sums to measure up the fiscal policy option available to government in carrying out social services as well as meeting developmental objectives.…”