EFFECTS OF TAX INCENTIVES IN THE DEVELOPMENT OF MANUFACTURING INDUSTRIES IN NIGERIA: A CASE STUDY OF EMENITE LTD ENUGU.


EFFECTS OF TAX INCENTIVES IN THE DEVELOPMENT OF MANUFACTURING INDUSTRIES IN NIGERIA: A CASE STUDY OF EMENITE LTD ENUGU.

ABSTRACT

After the economic depression of the 1930’s the concept of economy. Many nations began to implement policy measures aimed at both raising revenue for the government and encouraging investment via investment tax credit.  

In Nigeria, the concept of taxation, especially as it relates to tax incentive had been an important topic for discussion both in the government circle and in the private sector. A review of the annual budgets of the federal government reveals that the government usually give tax concessions and incentives to firms/ corporations in the following lines of business: manufacturing, agriculture and the mining sector. Over the years, successive administrations in the country had continued to reduce rate of effective taxes. In 1996 for instance, the highest rate of income tax was further reduced to 25% from 30% because increasing revenue from consumption taxation would compensate the military regime them felt that the loss in revenue as a result of the income tax cut. Would be compensated by increasing revenue from consumption taxation.

The purpose of this project/ research, therefore, is to ascertain the effects of tax incentives on the development of manufacturing industries in Nigeria by using Emenite (NIG) Limited as a case study. The project/ research consists of five chapters.

While chapter one served as the introductory part of the project/ research, chapter two dealt with the literature review where the various forms of tax incentives in Nigeria and the school of thought on the subject matter were discussed. Chapter three discusses the methodology for the research and chapter four deals with data analysis. Finally, in chapter five, the researchers discussed the findings of the research, summary, conclusion, and recommendations

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY:

The concept of taxation sharp momentum after the great would of economic depression of the 1930s. After the depression aimed at raising enough capital to provide for social overhead expenses and at the same time embarking on several ways to lift the standard of living of their citizens.

In Nigeria, there are many forms of taxations in practice dating back to the days of our great grandfathers, that is before the coming of our colonial masters, whereby communities tax themselves through labor to execute community projects or to help the community suppress external attack or aggression. Therefore, taxation can be referred to as machinery by which communities or groups are made to contribute part of their incomes in some agreed amount and method for the purpose of administering the society. This accounts for the reasons why taxation is often referred to as a civic responsibility.

The present tax laws in Nigeria were borne out of the Raisman’s fiscal commission of inquiry of 1957. Before them, we only had what was called the income tax colonies with similar providing section 70, subsection 1 of the Nigeria constitution, the order in council of 1960 which conferred an exchange power upon parliament to make laws for the whole Nigeria or any part of the country with respect to personal income tax. In the exercise of these powers, the federal government enacted the income tax management act of 1961 (ITMA) and because Lagos territory was being administrated as a region it enacted the personal income tax (Logos). Act 1961.

In April 1961, the income tax management act came into operation and all the existing laws at the regional level had to be amended to bring them into conformity with what the Raisman fiscal commission recommend in 1958, the introduction of the uniform basic principle of taxing the income of persons other than limited liability companies throughout the country. Oliver Wendell Holmes, United States Supreme Court judge said, “Taxes are the price we pay for a civilized society”.

Nigeria and been an encouragement by the government to attract individuals and corporate bodies to invest in the country. The idea of the research was to assess how the incentives had helped industries grow and how companies had availed themselves of these opportunities.

STATEMENT OF PROBLEMS

The study entitled effects of tax incentive in the development of manufacturing industries attempt to determine the way by which some organization or firm especially Emenite  Ltd. Emene has utilized huge amounts of money. Nigerian government sacrifices every year by way of tax incentives towards the development of manufacturing industries.

Some of the problems, which they encounter, are as follows.

    Liability of the tax incentives scheme to redirect the investment patterns of individuals and corporate bodies towards the development of manufacturing industries.

    The level of inefficiency in administering tax incentives schemes has made it impossible to use it to attract foreign investors to the manufacturing industries.

    Liability to use tax incentives in generating employment in manufacturing industries.

     Most manufacturing industries are unable to apply tax incentives in a flexible manner.

PURPOSE / OBJECTIVE OF THE STUDY

The purpose of this study is as follows:

    To ascertain the extent tax incentives have redirect investment of individuals and corporate bodies towards the development of manufacturing industries.

    To establish how inefficiency in administering tax incentive schemes has made it impossible to use it to attract foreign investors to manufacturing industries.

    To ascertain the extent to which most manufacturing industries are unable to apply tax incentives in a flexible manner.

RESEARCH QUESTIONS

The research questions of this study are as follows:

    To what extent do tax incentives redirect the investment pattern of individuals and corporate bodies towards the development of manufacturing industries?

    To what extent does inefficiency in administering tax incentive scheme distorts foreign investors to manufacturing industries?

    To what extent do tax incentives help in employment generation?

    To what extent do most manufacturing industries were unable to apply the tax incentives in a flexible manner.

SIGNIFICANCE OF THE STUDY.

This work will be very useful to the government. It will enable the government to know the extent to which manufacturing industries have been responding to the available tax incentives.

            Government, through this research, could evaluate the profitability of the tax incentives that is whether the revenue, in other words, will enable the government to know whether tax investment patterns of individuals and corporate bodies towards the development of manufacturing industries.

This study will also enable the government to compare the identify those that are profitable to the Nigerian economy at large.

This study will go a long way to sensitize companies and individuals on the existing tax incentives available to the manufacturing industry and their companies to make qualitative investment and tax decisions modeled to elevate the organization’s growth patterns.

SCOPE / DELIMITATION OF THE STUDY

For the scope, of this study, the researcher will restrict himself to the corporation tax incentive available to the manufacturing company in Nigeria. With particular reference to Emenite (NIG) Ltd. As a case study.

DEFINITION OF TERMS

Incentive: - According to advanced learner’s Dictionary, the word incentive is “that which incites or rouses a person action”

Therefore, tax incentive encompasses all the measures adopted by the government to motivate taxpayer or manufacturing companies to respond to their tax obligations. This may include adjustments to tax policy aimed at lessening the effects on an industry.

The taxation of consumption rather than income may, for instance, be considered as an incentive by people who believe that taxpayers find it more difficult to bear their income tax burden or direct taxes exert a harsher incidence on the tax base. An incentive is created when the government deliberately manipulates the tax system to the advantage of a potential investor or corporate body by adopting favorable tax policies.

Manufacture: According to the award illustrated dictionary (COZA), manufacture is defined as the making of articles by physical labor or machinery especially on a large scale; branch of such an industry.

Industry: the same dictionary defined “industry” as a branch of trade or manufacture, especially one employing much labor and capital infect, manufacturing in general.

.


TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.COM

Researchwap.com is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.com guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.com is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.com" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.