APPRAISAL OF SELF ASSESSMENT TAX POLICY IN NIGERIA, 2002 to 2019.

APPRAISAL OF SELF
ASSESSMENT TAX POLICY IN
NIGERIA, 2002 to 2019.
Uket E. Ewa
Department of Accountancy,
Faculty of Management Sciences
Cross River University of Technology,
Calabar, Nigeria.
uketewa@yahoo.com;
uketewa@crutech.edu.ng,

ABSTRACT
Implementation of self-assessment
policy is seen as enhancing tax
revenue
generation,
reducing
operational cost and operating in line
with international best practices. This
study was designed to appraise the
self-assessment tax policy in Nigeria
by exploring income streams from
CIT, PPT, VAT against GDP (at
current basic prices) and annual
budgets from to GDP ratio to be far

below average in other regions and
the lack of harmonization of tax
revenues by States and the federal
government for a realistic evaluation.
The study applying Ordinary Least
Square statistics revealed the tax
streams impacted GDP both in the
pre and post self-assessment periods
though their impacts varied. The
efficiency of the implementation of the
self-assessment policy tested using
tax to GDP ratio and tax to budget
ratio revealed pre self-assessment
period performing better than the
post self-assessment period as pre
self-assessment period tax to GDP
ratio is 6.63 per cent as against post
self-assessment period tax to GDP
ratio of 4.23 per cent. Also, pre self-
assessment period tax to budget ratio
is 119.62 per cent as against post
self-assessment period ratio of 92.18
per cent. This is attributable to
decline in performance during the
post self-assessment period as a
result of reduction in petroleum profit
taxes occasioned by decline in taxable
profits of companies in the Petroleum
Sub-sector due to slump in global
crude oil prices.

Keyword:
Self-assessment,
gross
domestic product growth, petroleum
profit tax, company income tax, value
added tax

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