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This study paper evaluated the following: taxation as a major source of government money and the impact on management decision making with particular reference to Enugu state board of internal revenue. The effect of taxation on managerial decision making.

To assess the role of taxation in the development of Nigeria, particularly Enugu state. The numerous issues of taxation in Enugu state. The study’s data came from two main sources: primary and secondary sources of data collection. Questionnaires and oral interviews were used to acquire primary data from respondents.

Secondary data: Journals, magazines, and other sources related to my inquiry will be reviewed. A thorough assessment of direct and indirect literature on books, journals, and previous publications was conducted. This study’s research instruments comprise an oral interview and a questionnaire.

The questionnaire is designed in such a way that it includes both closed and open-ended questions. In the data treatment, simple tables, pie charts, and percentages were used, whereas chi-square was used in the study work.

The researcher discovered that taxes has a major influence on managerial decision making. Taxation plays numerous roles in the growth of Nigeria, particularly Enugu state.

The study also discovered that there are numerous issues with taxation in Enugu State. Based on the data, I urge that the state government establish revenue counts or open up more customary areas specified by the board of internal revenue tax office be formed at strategic locations for easy access to taxpayers.

Special allowances and incentives, such as hazard allowances or other similar allowances, should be granted to board of internal revenue workers.



Taxation is an important tool for both rich and poor countries. Taxation is recognised to achieve a variety of goals, including revenue creation for the government, economic stabilisation, and income redistribution.

Taxation, as a tool of public policy, is primarily concerned with manipulating the financial operations of both the public and private sectors in order to achieve a specific economic goal.

In Nigeria, these economic objectives include achieving a significant level of full employment, avoiding excessive inflation, and achieving a decent balance of payment position.

Significant increase in national income and reduction in extreme inequality among citizens, provision of other vital elements of life like as water, schools, bridges, highways, and others.

The question now is, how do these activities come to be discovered?

The government can only execute these duties by producing enough revenue to finance the completion of the tasks ahead, and the board of internal revenue is mandated by law to assess, collect, and account for all taxes in Enugu state.

Taxation is defined as an obligatory levy by the government to the individual and payable to the economic and social duties. According to Simon’s Income Tax (1852),

Lord Maccnaghten stated that “income tax is a tax on income.” It is not intended to constitute a tax on anything else.” Tax, according to Dalton (1954:23), is a compelled contribution levied by a public body regardless of service supplied in return. Njokamma’s income tax law and practise. C.A. described income tax as a status inventive.

When it comes to interpreting its provisions. There should be no implication of “no equity, no intention,” or anything else. The law’s clear requirements should be followed, but they should not be limited to revenue.

However, taxes are not the only source of government revenue; there are other sources as well.

Penalties and fines

Fees for driver’s licences

Repayments and interest

Government dividends and royalties

Stock holdings


State share of federal government loan and grant distribution

School expenses

Hospital charges

Revenue from government parastatals such as the Department of Water Cooperation.

The private sector is not left out of the fund generating process; they have their own fund that is informed of borrowing, private savings, and so on.

Due to the lack of well-organized and locally managed money markets for borrowing, most developing countries, including Nigeria, have had to rely primarily on fiscal measures to mobilise domestic monetary resources for revenue collection.

For example, if taxation earnings fall, the marginal efficiency of investment falls, and investment falls as a result. On the other hand, if taxation profits rise, the marginal efficiency of investment rises, and investment falls.

However, Duke (1962, p. 462) stated that an effective tax system that encourages investment must be based on high rates, a fact peculiar with the paradox of investment stimulating taxation, as well as discrimination,

so long as it is significantly qualitative and psychologically significant. This suggestion may not bode well for investment activity, as retained profits and savings serve as the capital formation bank.

Recognising the significance of finance as the train lines of economic growth, the government implements financial policies through annual budgets, extension services for these private companies, and various government financial enterprises.

We are now sure that the government contributes the greatest proportion of all revenue sources. With these accusations in mind, attention has been focused on the fiscal policy most suited to the country’s economic development.

The value of products and services payable by final consumers is given special consideration in the quest for suitable fiscal policies. VAT is used to collect taxes that are accountable to the federal government.

Nonetheless, the implementation of various government measures and their impacts are frequently at odds with the government’s objectives.

Some tax collection agencies are either ill-equipped to carry out their functions successfully or are staffed by people of questionable character who believe in the government’s noble goals.

Most taxpapers do not pay gladly; some take laws into their own hands to either cheat or avoid tax, while others collide with tax officials and hire tax professionals to discover tax loopholes. As a result of such unethical taxing practises, the government’s predicted revenue is constantly reduced.

Given the importance of taxation as a primary source of government revenue as well as a significant tool in the implementation of public policy.

This study aims to investigate all avenues of tax collection in Enugu state, as well as the performance of the Enugu state board of internal revenue, in order to maintain the flag flying in favour of the study’s topic, which is taxation as a major source of government revenue.


Taxation accounts for the majority of internally generated revenue in Enugu State, as well as the primary source of money for the government in supporting its operations.

Tax, on the other hand, has inherent administrative and managerial issues.

There is a pervasive lack of planning, control, and proper information flow in tax collecting. Since the government’s financial policies and aims are to secure appropriate revenue and a favourable atmosphere for the happiness of the people through progressive taxes and other fiscal measures meant to end the society’s rapid growth and development for the benefit of the citizens.

As a result, it is critical that these recreational opportunities be strengthened. However, the implementation of the government’s taxation policy and the achievement of the taxation aim frequently diverge from the policy established in the annual as well as the tax laws provisions.

Many individuals and organisations regard taxes policy as severe and unfavourable. They contend that while few businesses, particularly major corporations, continue to benefit from government assistance in the form of grants, subsidies, and other tax breaks. Others find the policies intolerable, thus any possibility for tax evasion or avoidance is taken advantage of.

As a result of all of this tax evasion and avoidance, the government collects less revenue through taxes and hence implements fewer social programmes than planned.

These issues will be resolved as soon as an efficient machinery for effective administration and evaluation of state tax legislation is put in place.


The purpose of this research, titled “Taxation as a major source of government funds and the impact on management decision making” with specific reference to the Enugu State Board of Internal Revenue, is to:

1. Investigating the effect of taxation on managerial decision making.

2. To assess the significance of taxation in the development of Nigeria, particularly Enugu state.

3. Identifying the many issues related to taxation in Enugu State.

4. Also, propose potential remedies to the concerns noted.


The following study question was posed by the researcher:

1. How does taxation affect management decision making?

2. What are the functions of taxation in the growth of Nigeria, particularly Enugu state?

3. Is there any issue with taxation in Enugu state?

4. What are the potential solutions to Enugu State’s taxation problems?


The following research hypotheses were developed in order for the researcher to conduct significant investigation on the subject:

Ho: Taxation has no effect on managerial decision making.

H1: Taxation has a substantial influence on management decisions.

Ho: Taxation has played little influence in the growth of Nigeria, particularly Enugu state.

H1: Taxation has played numerous roles in the development of Nigeria, particularly Enugu state.


This research will be extremely beneficial to:

The researcher will have a better understanding of the significance of taxation as a key source of government money and its impact on management decision making.

It will also be very important to stakeholders since it will broaden their understanding of the benefits and utility of taxation by individuals and organisations.

This study would be extremely beneficial to the country of Nigeria since it will assist policymakers in developing laws that will guide collecting of taxation in Nigeria as a major source of revenue for the government.


The research will concentrate on taxation as a major source of government money and its impact on management decision making, with particular reference to the Enugu State Board of Internal Revenue.

During the course of this investigation, the researcher faced a number of issues, including:

FUND – This included a lack of funds to move around and visit organisations; the researcher had to visit the organisations more than twice; and the researcher also needed enough money to gather material,

which was a hindrance. The researcher was also limited by the high expense of transportation in the city due to the great distance.

shortage OF RESEARCH MATERIALS: One of the challenges encountered by the researcher as a result of this research activity was a shortage of research materials.

RESPONDENTS’ VIEWS: Another limitation for the researcher was that some of the respondents found it difficult to convey their views on the topic issue.

From the aforementioned considerations, the researcher attempted to provide a detailed study on taxes as a key source of government funding and its impact on management decision making, however the aforementioned limits limited the researcher to only the Enugu State Board of Internal Revenue.


Some of the terminology used throughout this research that are relevant to the subject are defined:

Revenue: A governmental unit’s gross receipt or receivable obtained from taxes, customs, and other major sources of government revenue, but excluding appropriation and allotment from the consolidated revenue fund (CRF).

Oxford Advanced Learners Dictionary of Contemporary EnglishTax is defined as “(sum of money purchased, etc.) paid to the government for public purposes.” Tax can alternatively be defined as a natural or cooperative tax paid to the government for the benefit of the citizens.

Tax Assessment: the calculation of the tax owed by an individual.

Zonal Tax Authorities: These are senior tax officers who are in charge of assessing and collecting taxes in their zone.

Tax laws are formed by the government and are subject to review, as well as providing recommendations and draughts on how and when taxes are paid.

These statutes serve as a guideline for all of the federation’s tax departments. ITMA 1961, Income Tax Management Act 1991, and so on are examples of income management acts (ITMA). These are the laws that govern tax collection and payment in Nigeria.

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