1Department of Managementand Accounting, Ladoke Akintola University of Technology, Ogbomoso. Oyo State, Nigeria
2Department of Management and Accounting, Ladoke Akintola University of Technology, Ogbomoso. Oyo State, Nigeria
The study assessed the impact of Capital Gain Tax on Economic growth in Nigeria. It also evaluated the significant components of Economic growth in Nigeria. Data were gotten from Central bank of Nigeria (CBN) Statistical Bulletin and Federal Inland Revenue service Bulletin from 2006 to 2015. Pearson product moment correlation and multiple regressions were employed to analyze the relationship between the dependent variable (Economic growth) and independent variables (Capital Gain Tax, Exchange rate and Inflation rate). Findings show that there is a positive significant impact of Capital Gains Tax on Economic growth in Nigeria (P>|t = 0/014-p ≤ 0/05) with the adjusted R2 @ 60.3%. Also, Capital Gain Tax and Exchange rate have positive significant correlation 0.8547*; and 0.7830* respectively with Economic growth in Nigeria. In conclusion, Capital gain tax had positive significant impact on Economic growth but the level of significant is very low in Nigeria. It is now recommended that Government should increase the rate of Capital gain tax in Nigeria so that the revenue generated from this medium will be elevated in order to cater for the well being of the citizen in the country.
Capital Gains Tax, exchange rate, Inflation rate, GDP, Nigeria
