The Effects of Corporate and Individual Income Taxes on A gricultural Development in Nigeria

Abstract

Research background: The contribution of Nigerian companies and personal income taxes to agricultural development must be assessed. Throughout the years, comparable studies have focused on general economic growth rather than a specific facet of the national economy. Agriculture ensures food safety, job creation, and industrialization, which is why government revenue should be reassigned to improve agricultural production. Purpose: The particular goal of this study is to investigate the extent to which corporate and individual income taxes influence agricultural growth in Nigeria. Research methodology: The data set for dependent and independent variables are collected from the Central Bank of Nigeria Statistical Bulletin and OECD accordingly. The reliant variable in the study is government investment in agriculture, while the independent variables are companies and individual income taxes. The data collected for this study is analyzed using a multiple regression analytical approach. Result: At the 1% level of significance, the results of the multiple regression analysis show that personal income tax has a significant and positive influence on agricultural development. Corporate tax does not have a significant impact on agriculture. This outcome could be attributed to the lack of government attention to agriculture as well as other Nigerian factors such as corruption and tax evasion. The research suggests that tax revenue should be collected more effectively and efficiently, and that tax resources be directed more toward sustainable agriculture. Novelty: This study is unique in that it is the first to examine the usefulness and application of corporation and individual income taxes to agricultural finance.