This impact of Task incentives of Economic and industrial development
of Enugu state Intends to examine the extent individuals ad companies
have been responding to the incentives scheme. How these incentive have
been stimulating and motivating these bodies on employment
opportunities. The researcher intends to examine also how these
incentives have been helping existing industrials and companies in
expanding their areas of operations in Enugu ad to know if the expected
result of these incentives are achieved by the firms who benefit from
these relives. Some of the factors which have motivated the researcher
in this study include: weakness of the firm to respond to the desired
objective, lack of awareness and the aims for granting the relief in
adequacy of incentives to sustain the desired development. In this work,
the researcher looked into textbooks journals, articles and
administered questionnaires to practicing personalities which include
tables were used in analyzing the data collected, it was revolved that
more than 50% of the firms and individuals studied are aware of the
incentive. A good number of them did not go into production, because of
the incentives and more than 50% suggested that more incentives should
The mode by which economic and industries can be effectively
and efficiently developed have a problem. As a result, government
charges less tax in order to encourage investments and activities in
those areas which helps to improve the production capabilities, active
economic growth as well as allocation of resources in social desirable
Tax incentive is the use of government spending and tax
policies to influence the level of national income. Taxation itself is
the process or mean by which communities or group are made to contribute
part of their income for purpose of administration of the society.
This measure will encourages new enterprises to spring up.
Thereby reducing profit task which encourages production to curb
unemployment. Government should provide employment opportunities, to
improve our economy.
The government infrastructure facilities such as roads, water
supply, electricity hospital etc more reallocate resources to the public
sector charging mix input. By borrowing rather than taxing, the
federal government has a better chance of expanding investment spending
which is essential to enlarge our production possibilities and attaining
increase in standard of living.
In order hand, these incentive can be targeted on low income
earners. This will normally increase their saving which is necessary for
Tax incentive also create employment opportunities people which help
to fight depression, inflation thereby increasing distribution of income
STATEMENT OF THE PROBLEM
This impact of tax incentive on economic and industrial
development using Enugu state as a case study although there are many
advantages got were tax incentives are use for economy and industrial
development most task experts, consultants individuals and economic
analyst ignored or criticized tax incentives because of the following.
1. the impact of incentives are not effective in the economy
2. The exemption privilege not granted to all firms in an industry which place some companies at a competitive disadvantage
3. Many management of firms, companies lack awareness of the incentive
4. The incentive granted are not adequate to the development and growth of industry
5. Unwillingness of some companies and individuals to claim the incentive. This is because they do not understand the role.
PURPOSE OF THE STUDY
Tax incentive is a strong fiscal measure or policy which can
stimulate investment and savings leading to capital information. This
capital acquisition can be used productively in economic and industrial
development of companies and individual can use them effectively. In
deciding if these incentives can stimulate the companies and individuals
to invest in the economy. One basic fact is this whether the company
individual concern decided to go into business because of tax incentives
offered. In this study the researcher intends or companies, have been
responding intend or companies, have been responding to incentive
scheme how these incentive have been stimulating and motivating these
bodies to establish industries, which will create employment
Moreover, he researcher intends to examine how these scheme
has been helping existing industries and companies in expanding their
areas of operation in Enugu
1. Can these tax incentives attract foreign incvestors in Nigeria via – Enugu state?
2. Are the existing tax incentive adequate for development?
3. Are those incentives claimable by the companies?
4. Do these incentive stimulate individuals to establish new enterprises?
5. Do these tax incentives induce the existing industries in Enugu to pursue vigorous policy expansion.
SIGNIFICANCE OF THE STUDY
Tax incentive scheme is an economic policy which exist among
many other competing alternatives. The scheme may be an inducement
towards rightful investment, securing proposal on private investors lay
behind, it then follows that if the schemes is a pale shadow for pilling
stock of profitable that the benefits expected from these incentives
should be able to justify the cost.
a. As a result of creating many industries and subsequent
expansion of existing ones, it standard of living of the populace will
b. Tax incentives will helps in small scale industries
which will subsequent expansion of existing one’s the standard of living
of the populance will be increased.
c. Tax incentive scheme leading to diversification will be
also result in increasing Urban and rural development. It is the
intention of the researcher to look into ways and extent the existing
tax incentives are being used by entrepreneurs in setting up industries
establishment in Enugu State.