Abstract

Tax has impacted significantly on economy globally. In addition to the revenue generation function it performs for the government; it has also proved to be a useful tool of fiscal policy in achieving the country’s macro-economic objectives. In Nigeria, revenue generation from taxes has contributed substantially to the income of the government although the role of tax in promoting economic growth has not been adequately felt. Past documentations have revealed that revenue from taxes in developed nations have high impact on its economic growth which is clearly seen by the social amenities provided by such nations. Thus, the main objective of this study is to explore how reengineering of taxation can serve as a source of economic stabilization in Nigeria