Taxation: A Veritable Tool for Reducing Unemployment in A Developing Economy

Abstract

The main objective of this paper is to suggest ways through which taxation can be a veritable tool for the reduction of unemployment in a developing economy like Nigeria. Secondary data was used in the course of this study. The unemployed are the economically active population who are without work but available for and seeking work, including people who have lost their jobs and those who have voluntarily left work. Unlike what obtains in most developed countries, in Nigeria, there is no social security system in place to cater for the unemployed. Many have thus, resorted to engaging in activities that constitute security challenge to the country. It has been found that government can contribute to the resourcefulness and usefulness of every Nigerian through the utilization of tax in drastically reducing the rate of unemployment. The study recommends that government should embark on a comprehensive reform of corporate, property and personal income taxes to optimize the utilization of taxation as a mechanism for reducing unemployment rate.