Role of digital tax platforms adoption in enhancing revenue generation and capital projects funding in emerging markets

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.