The Impact Of Tax Incentives On Economic And Industrial Development

THE IMPACT OF TAX INCENTIVES ON ECONOMIC AND INDUSTRIAL DEVELOPMENT

(A CASE STUDY OF BOARD OF INTERNAL REVENUE ENUGU STATE

ABSTRACT

 

          This impact of Task incentives of Economic and industrial development of Enugu state Intends to examine the extent individuals ad companies have been responding to the incentives scheme.  How these incentive have been stimulating and motivating these bodies on employment opportunities.  The researcher intends to examine also how these incentives have been helping existing industrials and companies in expanding their areas of operations in Enugu ad to know if the expected result of these incentives are achieved by the firms who benefit from these relives.

          Some of the factors which have motivated the researcher in this study include: weakness of the firm to respond to the desired objective, lack of awareness and the aims for granting the relief in adequacy of incentives to sustain the desired development.

          In this work, the researcher looked into textbooks journals, articles and administered questionnaires to practicing personalities which include tables were used in analyzing the data collected, it was revolved that more than 50% of the firms and individuals studied are aware  of the incentive.  A good number of them did not go into production, because of the incentives and more than 50% suggested that more incentives should granted.

 

TABLE OF CONTENTS

 

Title page                                                                                I

Approval page                                                                        ii

Dedication                                                                               iii

Acknowledge

Abstract

List of tables

 

CHAPTER ONE

1.0            Introduction

1.1     Statement of problem

1.2            Purpose of the study

1.3            Research questions

1.4            Significant of the study

1.5            Scope and limitation of the study

1.6            Definition of terms

 

CHAPTER TWO

REVIEW OF LITERATURE

2.0            Introduction

2.1     Criticism of the Tax and incentives scheme

2.2            Argument for tax incentives

2.3            Petroleum profit tax act 1959

 

CHAPTER THREE

RESEARCH METHODOLOGY

3.0            Introduction

3.1     Primary source of data

3.2            Secondary data

3.3            Population studies

3.4            Sample use and size

3.5            Methods of data analysis

 

CHAPTER FOUR

4.0            Data presentation and analysis

4.1            Research questions analysis

 

CHAPTER FIVE

Discussion of finding, conclusion and recommendation

5.0            Summary of finds

5.1     conclusion

5.2            Recommendation

Bibliography

Appendix I

Appendix II

 

 

 

 

 

 

 

 

PROPOSAL

 

          This research intends to highlight tax incentives on Economics and industrial development of Enugu State.  It also seeks to examine the extent to which individuals and companies have been responding to the incentive scheme.  The research will also show how these incentives have been helping existing industries and companies in expanding their areas of operations in Enugu state, and to know if the expected results of these incentives are achieved by firms who benefit from these relieves.

          In pursuance of this research study, the research will gather data through text books journals articles and questionnaires will be administered to practicing personalities.  Data gathered will than be analyze using tables.

          In the course of this research study, the researcher will face some constraints which include time constraint, financial constraint and inadequate materials.

          Some recommendations will be made which if implemented by tax exparct,  consultant, individuals and economic analyst will enhance a better  tax incentives.

CHAPTER ONE

 

INTRODUCTION

          The mode by which economic and industries can be effectively and efficiently developed have a problem.  As a result, government charges less tax in order to encourage investments and activities in those areas which helps to improve the production capabilities, active economic growth as well as allocation of resources in social desirable manner.

          Tax incentive is the use of government spending and tax policies to influence the level of national income.  Taxation itself is the process or mean by which communities or group are made to contribute part of their income for purpose of administration of the society.

          This measure will encourages new enterprises to spring up.  Thereby reducing profit task which encourages production to curb unemployment.  Government should provide employment opportunities, to improve our economy.

          The government infrastructure facilities such as roads, water supply, electricity hospital etc more reallocate resources to the public sector charging mix input.  By borrowing rather than taxing, the federal government has a better chance of expanding investment spending which is essential to enlarge our production possibilities and attaining increase in standard of living.

          In order hand, these incentive can be targeted on low income earners. This will normally increase their saving which is necessary for higher investment.

Tax incentive also create employment opportunities people which help to fight depression, inflation thereby increasing distribution of income and wealth.

 

1.1     STATEMENT OF THE PROBLEM

          This impact of tax incentive on economic and industrial development using Enugu state as a case study although there are many advantages got were tax incentives are use for economy and industrial development most task experts, consultants individuals and economic analyst ignored or criticized tax incentives  because of the following.

1.     The impact of incentives are not effective in the economy

2.     The exemption privilege not granted to all firms in an industry which place some companies at a competitive disadvantage