TAX GAP ASSESSMENT BETWEEN OIL-TAX AND NON-OIL-TAX REVENUE IN NIGERIA:PRACTICAL MEASURES FOR TRIMMING THE TAX GAP IN NON OIL TAX
DOI:
https://doi.org/10.63996/njte.v21i1.13Keywords:
Oil Tax, Non-Oil Tax, Tax Gap, Petroleum Profit Tax, Company Income Tax, Value Added Tax, Custom and Excise Duties, Capital Gain Tax, and Tertiary Education Tax.Abstract
Oil is inarguably a non-renewable source of energy. Thus, some daysomehow it would run out
and run dry. Nigeria is found to be one of the countries of the world that over-rely on oil-tax
revenue, against the non-oil tax revenue. However, to gain research evidence into this, the study
embarked on the assessment of their tax gap,to determine which reported a wider or severer tax
gap. Ex-post facto designed was the research design deployed since quantitative data are
already available, and obtained from Federal Inland Revenue Service, Nigeria. Regression
statistics (applied with the aid of SPSS, ver. 25) was utilized for the data analyses and test of
hypothesis. The study found that, although non-oil tax revenue recorded a stronger correlation
(81.3%), it has a significantly wider tax gap – 40% above that reported by oil-tax.From that
finding, the study recommended, among others, looking the way of non-oil tax revenue, such as
investment in cleaner and more sustainable energy sources, agriculture, and services; the
review of some of the non-tax rates to adapt them to the dynamic economic realities; and
provision of greater enforcement resources to tax authorities for more effective tax
administration.
