Comparative Study of the Effect of Personal Income Tax Amendment Act 2011 on Internally Generated Revenue of Adamawa State, Nigeria

This study been anchor on the practical gap, it identified the poor level of internally generated revenue, as one of the banes that results in the inability of the various state governments in Nigeria to defray workers’ salaries and provide for other basic infrastructural and social needs of its citizens. In the light of this, the study sets its main objective of taking a comparative examination on the effect of personal income tax amendment Act 2011 on internally generated revenue of Adamawa state. Specifically, the study examined the effect of direct assessment; pay-as-you-earn, and other taxes on internally generated revenue of Adamawa state; and make comparism on the contribution of direct assessment, Pay-as-you-earn and other taxes on internally generated revenue of Adamawa State; The study employed quantitative methodological approach, which allows it to use archival and ex post facto designed to generates secondary data from the annual reports and the revenue statement of Adamawa state board of Internal revenue for a period from 2001-2022. The data collected were analysed using descriptive statistics, trend/performance analysis, regression analysis and paired t-test. The study found that PAYE, and Other Taxes Revenue have positive and significant effect on IGR of Adamawa State, while Direct Assessment have Negative and insignificant effect on IGR of Adamawa State. The study recommends that PITA 2011 should be fully implemented by Adamawa state government and that taxpayer education/awareness should be embarked upon by Adamawa State Board of Internal Revenue with respect to the benefits of complying with the new PITA regime. And equally adopt the use of E-taxation in the tax collection process.