Online ISSN: 2519-9730 | Print ISSN: 2523-0565
Volume 3 Number 12 December 2018
The Assessment of the Impact of Taxation on Local Governments Revenue in Oyo StatePages: 133-141
Authors: Adegbite Tajudeen Adejare, Shittu Saheed Akande
This study examines the impact of taxation on revenue generated in local government of Oyo State, Nigeria. It also investigates the Problems of tax collection in local Governments in Oyo state. The study employed stratified sampling technique and simple random sampling technique to divide Oyo state into three senatorial districts. Secondary data was used for the study which was obtained from approved budgets and other financial statements of selected local governments from 2006 to 2015. Panel Data analysis technique was used to measure the effect of independent variables on dependent variable. Results show that Kiosk rate and slaughter slab fees have negative insignificant effect on local government revenue (t value -1.73; - 1.10 and P>|t = 0.086; 0.274 > 0.05 respectively). Burial permit has positive insignificant effect on local government revenue (t value 1.57, and P>|t = 0.118 > 0.05). Market tax, Marriage, Birth and Death fees, Motor Park Levies and Registration of street fee have positive and significant effect on selected local government revenue (t value 2.43, 8.45; 4.21; 2.91 and P>|t = 0.016; 0.000; 0.000; 0.004 < 0.05 respectively). In conclusion, taxation has positive and significant impact on local government revenue in Oyo state. It was deduced that if the collections of different taxes are properly coordinated and monitored, enormous revenue will be realized from these avenues. It is therefore recommended that local government should be well coordinated and synchronized in collection of taxes in order to eradicate all discrepancies that create contention and disputation for tax payers.