ABSTRACT

The development of a state depends on the support and cooperation of its citizen. The contribution of its citizen toward revenue derivation serves as a hub of government project. The objective of the study is to examine the socio- economic impact of taxation in Abia State. The theoretical framework used was Adam smith classic theory. The research used both primary and secondary sources of data. The population of the study was 38, the researcher did not sample the population because of its small size. The test statistic used for method of data analysis was chi-square (x2) statistical formula. Three hypotheses were formulated and tested in the course of this research work. Hypothesis No.1 which states that taxation has a significant impact on inflation, Unemployment and Gross domestic product (GDP) of the state. Hypothesis No.2 which states that taxation and economic development has effective significant impact. Hypothesis No.3 which states that government has been using tax generated revenue for economic development. Finding shows that the people have been paying their taxes till date but the government and it’s agencies has nothing to show for it in terms of providing basic infrastructure to the state. Embezzlement and misappropriation of government fund by those at the corridors of power usually kill people’s morale or interest to fulfill their civic obligation of paying tax. Am on the opinion that the problem taxation in Abia State is non accountability by side of the government and it’s agencies. This work recommends that tax education should be introduced in our primary, secondary schools, the media, television, radio and national dailies should be used effectively for educating the public against tax.