The Impact of Inflation on the Taxation of Capital Gain: ARDL Approach

Egiyi, Modesta Amaka (2021) The Impact of Inflation on the Taxation of Capital Gain: ARDL Approach. European Journal of Finance and Management Sciences, 5 (5). pp. 1-7. ISSN 2754-4109

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Abstract

This study investigated the long-run relationship and dynamic interactions between inflation and capital gain tax in Nigeria for the period 2000-2020. Secondary data were collected from the Central Bank of Nigeria Statistical Bulletin and World Bank Development Indicators. The Autoregressive Distributed Lag (ARDL) bound test as proposed by Pesaran and Pesaran (1997), and Pesaran et. al. (2001) was employed to empirically analyze the impact of inflation on the taxation of capital gain. From the results, it is evident that there is the existence of a long-run relationship between inflation and capital gain tax. The short-run dynamic model also uncovers that the speed of convergence to equilibrium is moderate suggesting that there is a short-run relationship between inflation and capital gain tax. The significant positive relationship between inflation and capital gain tax reveals that when the inflation rate is high, capital gain taxes therefore will be excessive

Item Type: Article
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Management and Social Sciences
Depositing User: mrs chioma hannah
Date Deposited: 22 Aug 2022 10:52
Last Modified: 22 Aug 2022 10:52
URI: http://eprints.gouni.edu.ng/id/eprint/3605

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