The Effect of Multiple Taxation on Household Finance

Abstract

The main aim of this study was to examine the effect of multiple taxation on household finance. The problems faced are in the area of negative relationship between taxes and the household’ ability to sustain itself. Many households in Nigeria are faced with the problem of high tax rates, multiple taxation, complex tax regulations and lack of proper enlightenment or education about tax related issues. 270 households in South West geopolitical zone Nigeria (Lagos, Osun, Ekiti, Ogun, Oyo and Ondo) were selected using stratified sampling method. Data from the questionnaire were coded,and results show that there is a statistically significant correlation between income and multiple taxation (Sig. = 0.015, p<0.05). There is no statistically significant correlation between savings and multiple taxation (Sig. = 0.705, p>0.05) or speeding and multiple taxation (Sig. = 0.240, p>0.05).This study concludes that multiple taxation has no significant impact on savings and spending and also affirmed that there is a significant relationship between multiple taxation and household income. To improve household finance, this study recommends that government should make judicious use of tax revenue for social and economic development of the nation so as to alleviate the sufferings of the masses and thereby reduce poverty which is eating deep and deeper in Nigeria. The study also recommends that Nigerians should endeavour to pay their taxes as at when due