EFFECT OF PERSONAL INCOME TAX ON INTERNALLY GENERATED REVENUE IN KOGI STATE

Musa Success Jibrin; Anaja Blessing; Success Blessing Ejura

Musa Success Jibrin Anambra State University, Igbarian Campus
Anaja Blessing Kogi State University, Anyigba.
Success Blessing Ejura Kogi State University, Anyigba.

Résumé

This study analyzes the effect of personal income tax on internally generated revenue in Kogi
State. The specific objectives are to examine the individual contributions of the components of
personal income tax, on internally generated revenue in Kogi State. This study used secondary
data from eight years record from Kogi State Board of Internal Revenue (KSBIR). Ordinary
least squares (OLS) regression method of analysis, was adopted to test the hypotheses and unit
root test of all the selected variables for the model were carried out using Augmented Dickey-
Fuller (ADF) methodology. All the variables in the models are stationary at first level with the
order of integration of I (1). The most important variables that can drive internally generated
revenue in Kogi State are correctly signed based on a priori expectation and are statistically
significant at 5% confidence level. The result of this research is free of auto-correlation in both
models. It is therefore agreed based on the result of this research that PAYE and other taxes
beside road tax and direct assessment can be used to measure the effect of personal income tax
on internally generated revenue of Kogi state. It is therefore, recommended that adequate care
and due diligence should be maintained to sustain the collection of PAYE and other taxes. The
existing law provision on direct assessment and road taxes in the state need review to improve
the collection that will impact on IGR.

Bibliographies de l'auteur

Musa Success Jibrin, Anambra State University, Igbarian Campus

Department of Accountancy, Faculty of Management Sciences

Anaja Blessing, Kogi State University, Anyigba.

Department of Accounting, Faculty of Management Sciences

Success Blessing Ejura, Kogi State University, Anyigba.

Department of Banking and Finance, Faculty of Management Sciences

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