Taxable Capacity: A Means for Internally Generated Revenue in Kaduna North Local Government Area of Kaduna State

Abstract

Local governments in Nigeria come into existence solely to promote the standard of living of their populaces. To actualise this objective the local governments, need sound sources of revenue and capacity to collect such revenue for appropriate usage. The potency of any local government to generate colossal internal revenue depends, among other things, on the taxable capacity. It is in line with the above that this study was carried out to examine the effect of taxable capacity on internally generated revenue (IGR) in Kaduna North local government area of Kaduna state. Data was gathered from both primary and secondary sources. Regression analysis was used to measure the level of effect of taxable capacity on the IGR with the aid of SPSS version 23 and the result revealed that taxable capacity has significant effect on the IGR of the local government (statistically significant at 99%). The paper therefore, recommends that for substantial yield of IGR, there should be organised collection of information (databank) of the revenue payers through using an electronic device and the standard of living of the populace should be enhanced.