THE IMPACT OF TAX HOLIDAY ON THE INFANT INDUSTRIES IN IMO STATE..

  • Type: Project
  • Department: Accounting
  • Project ID: ACC0495
  • Access Fee: ₦5,000 ($14)
  • Chapters: 5 Chapters
  • Pages: 89 Pages
  • Methodology: Chi Square
  • Reference: YES
  • Format: Microsoft Word
  • Views: 1.8K
  • Report This work

For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853
THE IMPACT OF TAX HOLIDAY ON THE INFANT INDUSTRIES IN IMO STATE..
CHAPTER ONE

INTRODUCTION
Tax policy among other being the basic objective of the encouraging capital formation for economic development.
Income that would otherwise be spent on non-essential is usually taxed out of their holder to mobilize enough savings to finance needed investment both in the manufacturing and social overhead capital.
However, in thud capital formation, sole development of the economy lies in the conflict between the need for high rate to raise enough capital for the government owned investment in utilities and infrastructures which are essential for development and industrializations and the need to keep tax rate low enough to encouraged private investor in industries and in agriculture.
The situation is further compounded by the fact that by and large, income are low in the development economy (giving rise to low tax revenue generally) and those tax which vary directly and rise progressively with the income and which are most effective in retrieving a good portion of gain of the economic development are the once likely to affect return from private investment.
In other to meet up with those conflicting demand, the approach is to combine high rate of tax with preferential treatment to categories of desired development activity (with penalty tax for undesired activities). At 45%, the company income tax rate in Nigerian as considered high enough could be an effective tool for any necessary deduction in the economic activity. But apart from the deriving, the must effective way of mobilizing capital , there is still he need to direct investment to the desired sector of the economy. Other dilemma here is that investment which meet the main motor of the private investor (capital profits) are not necessary those that bring about high social benefits. In fact before 1964, value added production was quit unattractive to entrepreneur. They regard trading and contract business as the quickest way of increasing the income. In addition, the British trading firm that dominated the economy with the assistance of the colonial government discourages diversified indoctrination in Nigerian to protect their own trading interest.
But with the Nigerian political independency in 1960, come the international completion for the Nigerian vast market. The intensification of this competition coupled with the government active encouragement gave impetus to industrialization. The investment in the industry after a public policy is a challenge to influence the level, composition and direction of the manufacturing output and capital production. Such policies at first encouraged the domestic production of various goods previously imported but latter emphasis has shifted to maximization of value added to the grose domestic product the policy is therefore at encouraging the utilization of our local raw material by the manufacturing firm in place of the imported ones and also for encouraging production for foreign market. Nigerian has been utilizing a system of fiscal incentive, which is consciously manipulated to influence the direction of investment in activities in the private sector. These incentives are embodies in fire legal enactment as follows;
The industrial development (income tax relief) Act of 1958 as amended by decree 22 of 1971.
The industrial development, (import duties relief) Act of 1957.
Costumes duties (dumped and subsidized goods Act of 1958.
The customs (draw back) regulation of 1958
The income tax (amendment) Act of 1959)
THE STATEMENT OF PROBLEM
Tax holiday scheme is wildly used by the developing countries in the belief that it is a useful fiscal industrial policy for rapid economic development, sine it is activity in the preferred sector of the economy. But the scheme can activity be providing subsidy to all the firm benefiting by it without necessary stimulating fir example if for a firm that enjoys tax holiday, the volume and timing of the incentive as well as the decision concerning the input and output market of an opportunity and other pioneer and other infant company sector. Condition of the firm remains as would have been without the tax holiday. Though the subsidy is enjoy but that firm become socially non beneficial.
It is therefore important to determine and to what extent is a firm stimulated to invest by tax holiday and them know which among the infant industry are stimulated and which are not from the which knowledge we can then determine the extent of the effectiveness of the tax scheme.
OBJECTIVE OF THE STUDY
In deciding whether a companies incentive included that (is stimulated) , two things comes to mind, whether the company decide to go into business because of the offer ( of the tax holiday which we shall not investigate here) also whether the company subsequent decision on investment are included by tax holiday subsidy.
Apart from using the liquidity model to evaluate the extent of inducement for subsequent investment of infant industry in Imo State (selection region) this study will also examine other basic issue that influence the effectiveness of tax holiday scheme.
RESEARCH QUESTION
The following research question is used for the project topic” the impact of tax holiday investment in private or infant industries ( a case of companies in Imo State.
1.       Did your industry decide to go into business in the first place because for the offer of tax holiday
2.       Is your industry subsequent decision on investment induced by tax holiday subsidy
3.       Is tax holiday scheme influencing the size of investment in your industry
4.       In what can increase in the investment as a result of fiscal inducement (some time coupled with the condition that indigenous labour must be used by the benefiting company) cause the red action in unemployment.
5.       How can tax holiday scheme be used to redirect investment pattern  
HYPOTHESIS FORMULATION
In order to employ a scientific approach to the realization of the objective of this research work, the following hypothesis were analyzed.
Ho: the impact of tax holiday on investment is not favorable in the infant industry in Imo state.
Hi; the impact of tax holiday to the infant industry in Imo state is favorable in Imo state
SIGNIFICANCES OF THE STUDY
The holiday involves the government expenditure in two forms
(a)                In form of subsidy to the infant industry
(b)               In form of cast of administering the pioneer scheme
 Been an expenditure, there should be benefit to show for it 9 particularly in this austere time) else the fund expended on it should be directed to other areas of need. This is why the evaluation of the scheme becomes important. Beside the scheme is an industrial policy, which there are alternative and one of which is government direct participation in the sector in which private investors lad behind. If the scheme is found to be an effective inducement, the alternative strategy for building stock of profitability investment in the relevant sector should take it place.
DEFINITION OF TERMS
The definition is for use in this book only and not for general standard definition. They are relevant to this context
Infant or pioneer industry: industry operating in Nigerian and in those areas where the government consider being beneficial to the Nigerian and assistance to which will in public interest.
Tax holiday: the period of time allowed of granted to the pioneer industry to enjoy income tax relief
Investment: the economic activity design to increase in dimension of growth or to maintain the production quality of the existing stock or capital.

THE IMPACT OF TAX HOLIDAY ON THE INFANT INDUSTRIES IN IMO STATE..
For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853

Share This
  • Type: Project
  • Department: Accounting
  • Project ID: ACC0495
  • Access Fee: ₦5,000 ($14)
  • Chapters: 5 Chapters
  • Pages: 89 Pages
  • Methodology: Chi Square
  • Reference: YES
  • Format: Microsoft Word
  • Views: 1.8K
Payment Instruction
Bank payment for Nigerians, Make a payment of ₦ 5,000 to

Bank GTBANK
gtbank
Account Name Obiaks Business Venture
Account Number 0211074565

Bitcoin: Make a payment of 0.0005 to

Bitcoin(Btc)

btc wallet
Copy to clipboard Copy text

500
Leave a comment...

    Details

    Type Project
    Department Accounting
    Project ID ACC0495
    Fee ₦5,000 ($14)
    Chapters 5 Chapters
    No of Pages 89 Pages
    Methodology Chi Square
    Reference YES
    Format Microsoft Word

    Related Works

    CHAPTER ONE INTRODUCTION Tax policy among other being the basic objective of the encouraging capital formation for economic development. Income that would otherwise be spent on non-essential is usually taxed out of their holder to mobilize enough savings to finance needed investment... Continue Reading
    TABLE CONTENT Title page                                                                      i Certification                                                                  ii... Continue Reading
    ABSTRACT We had tried to study the rates of infant mortality in Abia State. The aims of this study were to compare the mortality and birth rate of infants male and female in order to determine whether there is a significant yearly difference in their mortality and birth rate. Also, to determine whether infant mortality in Abia State in independent... Continue Reading
    ABSTRACT           We had tried to study the rates of infant mortality in Abia State.   The aims of this study were to compare the mortality and birth rate of infants male and female in order to determine whether there is a significant yearly difference in their mortality and birth rate.   Also, to determine whether infant mortality in... Continue Reading
    (A CASE STUDY OF FEDERAL MEDICAL CENTRE UMUAHIA FROM 1995 TO 2004) ABSTRACT We had tried to study the rates of infant mortality in Abia State.  The aims of this study were to compare the mortality and birth rate of infants male and female in order to determine whether there is a significant... Continue Reading
    . Project Abstract:  The purpose of this survey is to find out the causes and possible solution of infant mortality: A case study of Oredo Local Government Area of Edo State (2009-2013). The survey was deemed necessary as infant mortality in... Continue Reading
    TABLE OF CONTENTS ACKNOWLEDGEMENT APPROVAL DEDICATION DECLARATION . iv TABLE OF CONTENTS v LIST OF TABLES viii LIST OF FIGURES ix LIST OF ABBREVIATIONS x ABSTRACT CHAPTER ONE 1 INTRODUCTION 1 1.0 Introduction 1 1.1. Background of the study 1 1.2. Statement of the problem 2 1.3. Purpose of the study 2 1.4. Objectives of the study 2 1.6.0. Scope of... Continue Reading
    The study sought to establish the effects of ban on holiday teaching on academic performance in secondary schools in Soroti Municipality. This study aimed to establish the effect of abolishing holiday teaching on academic performance in secondary schools, students’ perception of the ban on holiday teaching practice and identify strategies... Continue Reading
    ABSTRACT Save the children initiative (2014), estimated general infant mortality rate to be 100 deaths per 1,000 live births for the 2011-2014 period (NPC, 2014). Regionally, south east, south west, north east and northwest have infant mortality rates of 74, 81, 129 and 139 deaths per 1,000 live births respectively. Indicating the highest... Continue Reading
    TABLE OF CONTENTS Declaration ............................................................................................ v Approval.. ............................................................................................. vi Dedication ............................................................................................ vii... Continue Reading
    Call Us
    Get this work
    whatsappWhatsApp Us