TAX BURDEN ON INCOME EARNERS IN EDO STATE, NIGERIA

Abstract

This study analyzes the tax burden on income earners in Edo State, Nigeria, with emphasis on the variation of tax obligations across income groups and the implications for compliance behavior and state revenue generation. The study was motivated by persistent public concern over rising tax pressures, low disposable income, and perceived inequities in the state’s tax system. Specifically, the research examined variations in tax burden among income groups, the types and rates of taxes imposed, taxpayers’ compliance behavior, and the challenges faced in fulfilling tax obligations, while also recommending measures to reduce the tax burden without compromising revenue generation. A descriptive survey research design was adopted, utilizing both primary and secondary data. Structured questionnaires were administered to 400 respondents drawn from civil servants, private-sector employees, and self-employed individuals across Edo State using stratified random sampling. Data collected were analyzed using descriptive statistics and regression techniques. The findings revealed that lower-income earners shoulder a relatively heavier tax burden compared to higher-income earners. The study also established that lack of adequate taxpayer education, poor administrative efficiency, and multiplicity of taxes negatively affect tax compliance. The study recommends rationalization of tax rates, enhanced tax education, improved transparency in tax administration, and the deployment of digital systems to promote fairness, compliance, and sustainable revenue generation for Edo State.