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Economics — 2025, Undergraduate
This study investigated the effect of taxation on household consumption in Nigeria. A descriptive survey was conducted with households and small business operators using a structured questionnaire. Data were analysed using descriptive statistics and regression analysis. The findings revealed that increases in indirect taxes such as value added tax shifted consumption patterns and reduced spending on non-essential goods, while perceptions of multiple taxation discouraged formal economic activity. The study found that tax burdens were regressive for low-income households. It recommends progressive tax design, tax education, and transparent use of tax revenue.
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