Role of digital tax platforms adoption in enhancing revenue generation and capital projects funding in emerging markets
Muyiwa Emmanuel DAGUNDURO
Department of Accounting, College of Social and Management Sciences, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria.
https://orcid.org/0000-0002-1177-7101
Gbenga Ayodele FALANA
Department of Accounting, College of Social and Management Sciences, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria.
https://orcid.org/0000-0001-8512-6769
Israel S. AKINADEWO
Department of Accounting, College of Social and Management Sciences, Osun State University, Ilesa, Osun State, Nigeria.
https://orcid.org/0000-0002-2094-6843
Oluyinka Isaiah OLUWAGBADE
Department of Accounting, College of Social and Management Sciences, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria.
https://orcid.org/0000-0001-8453-4728
Gbenga Olanrewaju AKINBOBOYE
Department of Accounting, College of Social and Management Sciences, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria.
https://orcid.org/0009-0003-3937-7235
DOI: https://doi.org/10.20448/economy.v12i2.6778
Keywords: Automated tax payment systems, Blockchain-based tax solutions, Capital projects funding, Digital tax platforms, Electronic tax filing, Revenue generation.
Abstract
Tax revenue plays a significant role in funding government activities, especially in emerging economies where public investment is essential for infrastructure development and economic progress. This paper assessed the effectiveness of digital tax platforms, specifically electronic tax filing, automated tax payment systems, and blockchain-based tax solutions on revenue generation and capital projects funding in Nigeria. This study employed survey research design using primary data collected via structured questionnaires. The sample included 4,352 individuals comprising tax officials from FIRS, federal government officials in finance and infrastructure, and IT experts involved in digital tax platforms. A multistage sampling method, combining purposive and random techniques, was used to arrive at 384 respondents as sample size. Data analysis involved descriptive statistics and multivariable regression. This found that digital tax platforms which comprised of electronic tax filing, automated tax payment systems, and blockchain-based tax solutions had a positive and significant effects on revenue generation and capital projects funding in Nigeria. This study concluded that digital tax platforms significantly improve both revenue generation and capital project funding in Nigeria. It was therefore recommended that the government should expand and modernize its digital tax infrastructure nationwide to ensure broader adoption among taxpayers and administrators.