Correlation Between Tax Remittance Practices and Sustainable Economic Growth in Benue State, Nigeria
DOI:
https://doi.org/10.64348/zije.2026375Keywords:
Taxation, Remittance Practices, Economic Growth, Benue State.Abstract
This study examined the relationship between tax remittance practices and economic growth in Benue State, Nigeria, with emphasis on key fiscal indicators including total tax revenue, income tax revenue, sales tax revenue, and resource tax revenue. The study adopted a descriptive research design and relied primarily on secondary data obtained from the Benue State Internal Revenue Service, National Bureau of Statistics, the Office of the Accountant General of Benue State, and the United Nations Development Programme. The analytical framework was anchored on Compliance Theory of Taxation, Fiscal Social Contract Theory, and Benefit Theory of Taxation, which collectively explain taxpayer behaviour and state revenue performance. Findings indicated that improved tax remittance practices, reflected in enhanced PAYE remittance compliance, withholding tax remittance, and enforcement efficiency, were associated with increases in total tax revenue and its major components, particularly income tax and sales tax revenues, with corresponding positive effects on economic growth indicators. Resource tax revenue also exhibited a positive relationship with growth, although its contribution was relatively modest. Tax base coverage and remittance timeliness showed positive but statistically insignificant relationships with growth outcomes. The study concluded that effective tax remittance practices can strengthen revenue mobilisation and promote economic growth in Benue State when supported by appropriate institutional mechanisms. It recommended improved remittance monitoring systems, stricter enforcement measures, and taxpayer education programmes to enhance compliance and sustain fiscal performance.
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