ABSTRACT:

The study was aimed at finding out the impact of taxation on revenue generation in Nigeria, with reference to FCT and some selected states in the country. Attempt is also made in the study ( through the means of secondary data) at highlighting the concept and nature of taxation, objectives of taxation, features in Nigerian tax system, taxation as a tool for wealth creation and employment, classification of taxes, Nigeria’s major taxes and other issues that relate to taxation. In achieving the objective of the study, the researcher adopted also primary sources of data to present and analyze the information for the study. The testing of the hypotheses of the study was done using regression analysis computed with the aid of SPSS version 17.0. The research discovered among others that, taxation has a significant contribution to revenue generation and taxation has a significant contribution on Gross Domestic Product (GDP). The research recommends among others that Well Equipped Data Base (WEDB) on all tax payers should be established by the Federal, State and Local Governments with the aim of identifying all possible sources of income of tax payers for tax purpose, the tax collection processes must be free from corruption. In addition, the Federal Government, States and Local Governments should urgently fully modernize and automate all its tax system, improve tax payers’ convenience in the assessment and payment process whilst at the same time entrenching effective and modern human resources management practice in the tax authorities.