Influence of Indirect Taxation on Nigeria's Economic Growth

Abstract

This research aims at determining the influence of indirect taxes on economic growth in Nigeria from 2003 to 2023. The sub-objectives are to evaluate the impact of excise duties, investigate the impact of stamp duties, identify the influence of custom duties, and analyze the influence of value added tax on real gross domestic product (RGDP) in Nigeria. Using an ex post facto research approach, the study employs the Autoregressive Distributed Lag (ARDL) technique for analysis. Findings indicate that excise duties and custom duties have a strong positive impact on RGDP. Stamp duties have a weak and negative impact, while value added tax has a large and negative impact on RGDP in Nigeria. The implication is that both stamp duties and value added tax are not being efficiently harnessed and utilized to spur the economic growth of Nigeria. The study recommends that government reviews and fine-tunes its fiscal policies to minimize the negative impact of some of its tax types on economic growth.