Tax Structure Implications on Exchange Rate and Infrastructural Development in Nigeria

The study examined the relationship between tax structure and exchange rate, capital expenditure using secondary data obtained from Central bank of Nigeria Federal inland revenue annual bulletin for period 1994 to 2022 multiple regression auto regressive distributive lag. Tax was divided into direct indirect consisting PPT, CIT VAT while dependent variable proxied by rate expenditure. Unit root test stationarity conducted Augmented Dickey Fuller Kwiatkowski Phillips Schmidt Findings show that in short run coefficients variables passed significance at 5 percent level indicating revenues critically influence changes current complete are all positive, which forms taxes promote spending government run. Thus, increasing will immediately deliver positive impacts on budgetary provisions Nigeria. also found improves impact confirms have significant macroeconomic performance long results report interesting outcomes two components level, failed level. This result shows PPT significantly expenditures Nigeria, has no impact. It suggests does not exert effects through channel. coefficient is however negative, tends reduce On other hand, indicates only directly improve or channel public debt estimates, possesses a negative sign. implies run, depreciation limit In particular every one rise be consistent with 0.877 VAT, accompanied an increase 0.93 percentage point. strong linked. led improvement may more effective maintaining stability than application taxes. increases tend produce external do fully guarantee improvements component rate. Indeed, it essentially lead reduction That both enhances over time, effect insignificant. channeled We recommend should pursue policies programs would help ensure boost local production consumption export. addition, holistic program economic reforms important complement policy stimulate growth