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Personal Income Tax and Infrastructural Development in Lagos State, Nigeria

Received: 30 September 2020     Accepted: 26 October 2020     Published: 23 November 2020
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Abstract

Infrastructural provisions and availability of resources to meet such needs has been the major point of concern to government in all states of the federation. In recent time Lagos State has been witnessing infrastructural deficit and this is actually affecting the standard of living of the citizens. Since the advent of civilian government in the state, internally generated revenue has been on the increase, yet the state is still witnessing a lot of infrastructural deficits. This study examined the contributions of personal income tax to infrastructural development in Lagos state to determine the effect that personal income tax has on infrastructural provisions of the state. The study adopted ex-post facto research design. The study covered Personal Income Tax and infrastructures development of Lagos State from 1997 to 2018. Secondary data were obtained from Lagos State Internal Revenue Services (LIRS), Lagos State Ministry of budget and planning and Lagos State Ministry of Finance. Data were analyzed using descriptive and inferential statistics. The study found that Personal Income Tax has significant effect on infrastructural development of the state. Given infrastructural provisions; EDH, EDR. On EDH, With Adjusted R2= 0.150, F-stat =3.678, and also at 5% significance level [β = 0.380; P – value = 0.008]. On EDR, Adjusted R2 = 0.315, F-stat = 3.915, Prob (F-stat) = 0.028), at 5% significance level [β = 0.352; P – value = 0.154]. The study shows that more government income from PIT was spent on housing infrastructures over other infrastructural provisions.

Published in Journal of Finance and Accounting (Volume 8, Issue 6)
DOI 10.11648/j.jfa.20200806.14
Page(s) 276-287
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Expenditure, Housing, Road, Development, Infrastructural Provisions, and Personal Income Tax

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  • APA Style

    Olugbade Julius Ade, Adegbie Folajimi Festus. (2020). Personal Income Tax and Infrastructural Development in Lagos State, Nigeria. Journal of Finance and Accounting, 8(6), 276-287. https://doi.org/10.11648/j.jfa.20200806.14

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    ACS Style

    Olugbade Julius Ade; Adegbie Folajimi Festus. Personal Income Tax and Infrastructural Development in Lagos State, Nigeria. J. Finance Account. 2020, 8(6), 276-287. doi: 10.11648/j.jfa.20200806.14

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    AMA Style

    Olugbade Julius Ade, Adegbie Folajimi Festus. Personal Income Tax and Infrastructural Development in Lagos State, Nigeria. J Finance Account. 2020;8(6):276-287. doi: 10.11648/j.jfa.20200806.14

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  • @article{10.11648/j.jfa.20200806.14,
      author = {Olugbade Julius Ade and Adegbie Folajimi Festus},
      title = {Personal Income Tax and Infrastructural Development in Lagos State, Nigeria},
      journal = {Journal of Finance and Accounting},
      volume = {8},
      number = {6},
      pages = {276-287},
      doi = {10.11648/j.jfa.20200806.14},
      url = {https://doi.org/10.11648/j.jfa.20200806.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20200806.14},
      abstract = {Infrastructural provisions and availability of resources to meet such needs has been the major point of concern to government in all states of the federation. In recent time Lagos State has been witnessing infrastructural deficit and this is actually affecting the standard of living of the citizens. Since the advent of civilian government in the state, internally generated revenue has been on the increase, yet the state is still witnessing a lot of infrastructural deficits. This study examined the contributions of personal income tax to infrastructural development in Lagos state to determine the effect that personal income tax has on infrastructural provisions of the state. The study adopted ex-post facto research design. The study covered Personal Income Tax and infrastructures development of Lagos State from 1997 to 2018. Secondary data were obtained from Lagos State Internal Revenue Services (LIRS), Lagos State Ministry of budget and planning and Lagos State Ministry of Finance. Data were analyzed using descriptive and inferential statistics. The study found that Personal Income Tax has significant effect on infrastructural development of the state. Given infrastructural provisions; EDH, EDR. On EDH, With Adjusted R2= 0.150, F-stat =3.678, and also at 5% significance level [β = 0.380; P – value = 0.008]. On EDR, Adjusted R2 = 0.315, F-stat = 3.915, Prob (F-stat) = 0.028), at 5% significance level [β = 0.352; P – value = 0.154]. The study shows that more government income from PIT was spent on housing infrastructures over other infrastructural provisions.},
     year = {2020}
    }
    

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  • TY  - JOUR
    T1  - Personal Income Tax and Infrastructural Development in Lagos State, Nigeria
    AU  - Olugbade Julius Ade
    AU  - Adegbie Folajimi Festus
    Y1  - 2020/11/23
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    N1  - https://doi.org/10.11648/j.jfa.20200806.14
    DO  - 10.11648/j.jfa.20200806.14
    T2  - Journal of Finance and Accounting
    JF  - Journal of Finance and Accounting
    JO  - Journal of Finance and Accounting
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    EP  - 287
    PB  - Science Publishing Group
    SN  - 2330-7323
    UR  - https://doi.org/10.11648/j.jfa.20200806.14
    AB  - Infrastructural provisions and availability of resources to meet such needs has been the major point of concern to government in all states of the federation. In recent time Lagos State has been witnessing infrastructural deficit and this is actually affecting the standard of living of the citizens. Since the advent of civilian government in the state, internally generated revenue has been on the increase, yet the state is still witnessing a lot of infrastructural deficits. This study examined the contributions of personal income tax to infrastructural development in Lagos state to determine the effect that personal income tax has on infrastructural provisions of the state. The study adopted ex-post facto research design. The study covered Personal Income Tax and infrastructures development of Lagos State from 1997 to 2018. Secondary data were obtained from Lagos State Internal Revenue Services (LIRS), Lagos State Ministry of budget and planning and Lagos State Ministry of Finance. Data were analyzed using descriptive and inferential statistics. The study found that Personal Income Tax has significant effect on infrastructural development of the state. Given infrastructural provisions; EDH, EDR. On EDH, With Adjusted R2= 0.150, F-stat =3.678, and also at 5% significance level [β = 0.380; P – value = 0.008]. On EDR, Adjusted R2 = 0.315, F-stat = 3.915, Prob (F-stat) = 0.028), at 5% significance level [β = 0.352; P – value = 0.154]. The study shows that more government income from PIT was spent on housing infrastructures over other infrastructural provisions.
    VL  - 8
    IS  - 6
    ER  - 

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Author Information
  • Department of Accounting, School of Management Science, Babcock University, Ilishan, Nigeria

  • Department of Accounting, School of Management Science, Babcock University, Ilishan, Nigeria

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