EFFECTS OF MULTIPLE TAXES ON PROFITABILITY OF DEPOSIT MONEY BANKS (DMBS) IN NIGERIA

Taxes are vital tools used by many countries to provide the infrastructural facilities to promote economic development and growth. However, the performance of deposit money banks has being affected through the multiplicity taxes. This study investigated the effect of multiple taxes on profitability of deposit money banks (DMBs) in Nigeria. Eighteen deposit money banks listed as at December 2018 were used as the population out of which seven (7) best banks were selected for the study using purposive sampling technique. The study used time series data from 2009 to 2018 obtained from Central Bank of Nigeria and National Bureau of Statistics while panel least square technique was employed to analyze the data. The findings of the study revealed that company income tax (CIT) had a negative significant effect on banks profitability of DMBs =-4.01, p = (0.0001)]. However, tertiary education tax (TET) and information technology tax (ITT) showed positive insignificant effects on profitability of DMBs =0.844, p = 0.399 and 0.161, p = 0.211 respectively]. The study concluded that multiple taxes partially and negatively affect the profitability of DMBs. Hence, it was recommended that Nigerian government needs to reduce company income tax as well as encourage tertiary education tax and information education tax to provide an avenue for improving profitability of DMBs in Nigeria.