EFFECTS OF COMPANY INCOME TAX AND PETROLEUM PROFIT TAX ON ECONOMIC GROWTH OF SUB-SAHARAN COUNTRIES IN AFRICAN

Abstract

This paper analyzes the effects of types of taxes on economic growth in Sub-sahara African countries. Two of the largest types of taxes are taken into analysis, namely company income tax (CIT), and petroleunm profit tax. The data for the independent variables (types of taxes) and the dependent variable (Gross Domestic Product – GDP) from 2000-2022. A total of 8 sub-sahara countries was put into consideration. The eight (8) countries focused were four Anglophone African countries (Nigeria, Malawi, Kenya, and Liberia) and four Francophone African countries (Congo, Angola, Burundi, and Cameroon). According to the regression result, company income tax has negative significant influence on the GDP of some selected Sub-Sahara African countries with a beta coefficient of -1.548709 and a t-statistics of -0.998334 and petroleum profit tax has a positive significant effect on some selected Sub-Sahara African countries with a beta coefficient of 0.019621 and a t-statistics of 1.007993. Therefore, the findings suggest that a balanced approach to taxation, considering both revenue generation and economic growth is essential for sustainable development in the sub-sahara African countries.