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Tax Incentives Catalyst For Industrial Development And Economic Growth
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1.4 SIGNIFICANCE OF THE STUDY
Tax
incentive scheme is an economic policy which exists among other
competing alternatives. The scheme may be an inducement towards rightful
investment and securing a proposal on private investors. This means
that if the scheme achieves its aim of implementation, then, the
benefits expected from these incentives should be able to justify the
cost with the following results/benefits:
a. As a result of the
creation of more industries and with the expansion of the existing ones,
the standard of living of the populace will be positively affected.
b.
Tax incentives will help the small scale industries to spring up and
aid in the expansion of existing ones thereby improving the standard of
living of the populace and its surrounding environs.
c. The tax incentive scheme leading to economic diversification will also result in increasing urban and rural development.
It
is the intention of the researcher to look into ways and the extent to
which the existing tax incentives are being used by the entrepreneurs,
in setting up industries and establishments which aids industrial
development and economic growth.
1.5 SCOPE OF THE STUDY
This study
covers the tax incentives as a catalyst for industrial development and
economic growth. The research study will be limited to the use of
questionnaires and oral interviews when appropriate and to a review of
related literature (review of relevant books and journals) that could
provide an insight into the impact of tax incentives on industrial
development and economic growth. Data collection will be restricted to
four industries and firms in Port Harcourt, Rivers State which are Nest
Oil Ltd, Abuloma, Paboard Breweries Nigeria Ltd, Rumumasi, Amsale
Engineering Ltd, Trans-Amadi, and Hallmark Mills Ltd Rumu-Kwurushi all in Portharcourt, Rivers State.
1.6 LIMITATION OF THE STUDY
The constraints of this study may be attributed to:
1.
Inherent limitations of the analytical method of gathering information
such as the un-cooperative attitude of the respondents.
2. Irrelevant
or unreliable information obtained from oral interviews. This is based
on the degree of the respondent’s truthfulness in answering the
question’s raised during oral interviews. Some of the respondents
thought that the research work is meant to expose their company and
thus, were not ready to give relevant information.
3. The writer was
also faced with time constraint which involved appropriating her time
between writing the project work and performing her academic function as
well as meeting her social needs.
4. Also encountered was the problem of getting an exact from the school authorities for the purpose of the research work.
1.7 HYPOTHESIS FORMULATED
Three hypothesis were formulated as shown below:
HYPOTHESIS ONE
Ho: Industries that benefit from tax incentives do not develop better than industries that do not benefit from tax incentives.
Hi: Industries that benefit from tax incentives develop better than industries that do not benefit from tax incentives.
HYPOTHESIS TWO
Ho: The tax incentives granted by the government to industries and firms is not considered as an economic booster.
Hi: The tax incentives granted by the government to industries and firms is considered as an economic booster.
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