Onwuzurike, Emmanuel Nnamdi and UGWU, James Ike (2020) EFFECT OF TAXATION ON THE PROFITABILITY OF SELECTED FOOD AND BEVERAGE COMPANIES IN NIGERIA. European Journal of Accounting, Finance and Investment, 6 (8). pp. 1-15. ISSN 3466 – 7037

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Taxation is a charge on income of individual but whether the deduction has significant effect on profitability of firms remains uncertain. The study, therefore, evaluated the effect of Company Income Tax (CIT) and Education Tax on the profitability of food and beverage firms in Nigeria. Ex post facto research was adopted for the study in which panel data were extracted from the firms published financial statement for the period spanning from 2009-2018. Panel data analysis revealed a positive and significant effect of CIT on Asset Turnover of beverage firms in Nigeria while Education Tax had negative but insignificant effect of on Asset Turnover of food and beverage firms in Nigeria. The study concludes that tax though necessary for generation of funds needed for economic growth and development, as well as, general administration of government and provision of infrastructure and other social welfare of the citizens, it should be approached with caution as excessive CIT and education tax would tax firms out of business thus shortage of fund at long-run. One of the recommendations is that education and/or persuasion of firm management on the need to pay education tax should be intensified as education tax provides the money for research on firms challenges with a view to solving them, provide firms with quality manpower needed. Thus, there is need for periodic town and gown assembly where the firms and academics interact and share opinions on socio economic problems.

Item Type: Article
Subjects: H Social Sciences > HF Commerce
H Social Sciences > HJ Public Finance
Divisions: Faculty of Management and Social Sciences
Depositing User: mrs chioma hannah
Date Deposited: 03 Nov 2020 13:52
Last Modified: 03 Nov 2020 13:52
URI: http://eprints.gouni.edu.ng/id/eprint/2820

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