Finance Act 2020: Its Effects on the Nigeria Economy

ABSTRACT

The aim of this study is to examine the Finance Act 2020 and its effects on the Nigerian economy. This study is anchored on the Optimal Tax Theory supported by the simplicity theory of tax and The Wagners Law. The total population for the study is 313 individuals from Keffi, Nasarawa state. The study adopted a descriptive survey design, and selected a sample population of 300 using the simple random sampling techniques. Findings from the study reveals that; compliance to Finance Act 2020 has a great impact on the Nigerian economy. The Finance Act 2020 has a significant impact on increase in collection of taxes nor reduce in double taxation. Findings also reveals that, beneficiaries of tax incentive as a result of the establishment of Finance Act 2020 are taking advantage of its various incentives which improves income generation and the standard of the economy. Further results shows that, finance act 2020 has a significant impact on creating investment opportunities and does improve standard of the Nigerian economy. The study therefore recommends that, tax authorities and relevant government agencies should commence preparation of administrative notes, enlightenment guides, effective compliance aid and other implementation guides to enable taxpayers understand the import of these amended legislation in order to invoke ease of compliance and to prevent double taxation of taxpayers.