THE EFFECT OF TAX INCENTIVES IN THE INDUSTRIAL DEVELOPMENTS IN NIGERIA
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ABSTRACT
It is often heard that some companies tries to manipulate their financial statement to avoid paying tax or even when they say it is lesser than they supposed to have paid, deposit the tax incentive given to them and that make the researcher to look in depth to find out the effect of this tax incentives offered to private investors and its impact in the industrial development at the entire nation. How far has the tax incentive helped to redirect the investment pattern in Nigeria? It is also aimed at finding out whether individual and firms decides to go into business because of this incentive offered.
To solve the research problem some research question were formulated like
(a) To what extent have the selected existing industries in Nigeria induced to expand their business through tax incentives offered?
(b) Which type of incentives is more appealing and how adequate is it to investors. The relevant information for this study was collected through the primary and secondary sources. Questionnaires and interview were carried out and administered respectively. Percentage method was used to analyze the data. Findings of the study includes, that the industrialists were not only motivated o invest because of the tax incentive granted to them but also because other factors like geographic factors. The tax incentives gives to them are not adequate and consistently granted. The industrialists are responding to the objective of the tax incentives, which would increase the ability to invest and save. Base on the findings it is recommended that, attention should be given to the industries located in the rural areas. Committees should be set up to see that the tax incentives granted is adequate and consistent. Special incentives should be given to them very well to enable them improve and establish new industries.
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