EFFECT OF TAX ADMINISTRATION ON SOCIO ECONOMIC DEVELOPMENT IN TARABA STATE: A STUDY OF JALINGO LOCAL GOVERNMENT AREA

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Abstract

The thrust of this study is to examine the effect of tax administration on socioeconomic development in Taraba state with a focus on Jalingo local government, a senatorial zone marked by ethno-religious diversity, high poverty, and infrastructural deficits. Employing a 
mixed-methods approach, the research examines how inefficiencies in tax administration, such as weak compliance mechanisms and limited technological adoption, hinder revenue mobilization and constrain socioeconomic progress in areas like education, healthcare, and infrastructure. Data from surveys, interviews, and secondary sources reveal that Taraba’s local governments rely heavily on federal allocations, with internally generated revenue (IGR) contributing less than 10% to total revenue. The 2024 Nigeria Tax Reform Bills, which increase the VAT share for local governments to 35%, offer potential for enhanced revenue, but face challenges from administrative weaknesses and regional disparities Recommendations include adopting digital tax systems, enhancing administrative capacity, and fostering community engagement to improve tax compliance and fund sustainable development. It was 
recommended among others that to strengthen the weak positive link between tax revenue and infrastructure spending, Taraba State should implement stricter fiscal discipline and allocate a fixed percentage of tax revenue directly to capital projects.