IMPACT OF TAX REFORMS ON INTERNALLY GENERATED REVENUE IN ADAMAWA STATE, NIGERIA
Mbasti Haziel Taiya, Joshua Tumba Dabbois and John Iliya
Volume 14 Issue 2
Abstract
This study examined the impact of tax reforms on internally generated revenue in Adamawa State, Nigeria, focusing on three specific reform measures: personal income tax reforms, small business tax exemption reforms, and rent relief reforms. The study adopted a survey research design, collecting primary data through structured questionnaires administered to 218 senior staff of the Adamawa State Internal Revenue Service across seven zones in the state. Data were analyzed using descriptive statistics and regression analysis. The findings revealed that personal income tax reform has a positive and significant impact on internally generated revenue (β = 0.297, p = 0.000), indicating that improvements in personal income tax administration significantly contribute to revenue generation. However, small business tax exemption reform has a negative and insignificant impact (β = -0.016, p = 0.635), suggesting that exempting small businesses from tax does not enhance revenue generation as most were already outside the formal tax system. Similarly, rent relief reform has a positive but insignificant impact (β = 0.020, p = 0.556), indicating limited practical effect due to weak institutional capacity and inadequate property registration systems. The regression model explained 22.3% of the variation in internally generated revenue. The study recommends strengthening personal income tax administration, replacing blanket small business exemptions with a simplified taxation regime that encourages formalization, and establishing a comprehensive property database to enhance rent relief effectiveness. Keywords: Tax Reforms, Internally Generated Revenue, Personal Income Tax, Small Business Tax Exemption, Rent Relief, Adamawa State
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