TAX AND INCOME REDISTRIBUTION IN NIGERIA

This study investigates the impact of taxation on income redistribution and various economic factors in Nigeria. The primary objectives are to assess how taxation influences income inequality, commodity purchase behavior, export promotion, inflation control, and the protection of infant industries. Through a comprehensive analysis, the study finds that taxation significantly affects income inequality and highlights a notable difference in the taxation of goods considered "bad" compared to other goods. The results also indicate that tax policies in Nigeria play a critical role in government revenue generation, export promotion, inflation control, and the protection of emerging industries. The study concludes that effective taxation policies can lead to more equitable wealth distribution, healthier consumption patterns, enhanced government revenue, increased exports, controlled inflation, and the growth of nascent industries. However, the success of these policies depends on efficient tax
administration, compliance, and the integration of complementary economic measures. Recommendations include improving tax collection systems, enhancing tax progressivity, increasing taxes on harmful goods, and providing targeted tax incentives for export-oriented and emerging industries. The study contributes to the body of knowledge by offering empirical
xiii evidence on the multifaceted impact of taxation in Nigeria and provides a foundation for policymakers to develop more effective tax strategies to foster sustainable economic development.