Personal Income Tax Administration and Revenue in Anambra State

This research evaluates the administration of personal income tax and its contribution to internally generated revenue in Anambra State, South East Nigeria. Personal income tax, particularly as deducted through the Pay-As-You-Earn (PAYE) system from formal sector employees, constitutes the largest component of many states' IGR. Anambra, despite hosting a vibrant commercial economy, continues to record IGR below its estimated potential, raising questions about the effectiveness of its tax administration machinery. A descriptive survey design is adopted, with primary data collected from 150 employers of labour, individual taxpayers, and staff of the Anambra State Revenue Service across Awka, Onitsha, and Nnewi. The questionnaire assesses PAYE deduction practices, filing frequency, experience with revenue service interactions, and perceived obstacles to timely payment. Secondary data from the Anambra Revenue Service are incorporated for analysis of revenue trends. Descriptive statistics, regression, and chi-square tests are employed. The study expects to find that PAYE collection from the formal sector is relatively efficient, but self-employed and informal sector workers remain largely outside the personal income tax net. Inadequate enforcement of PAYE remittance obligations by employers of small workforces is also identified as a gap. Recommendations include extending PAYE compliance checks to micro and small employers, simplifying the annual income tax return process for self-employed individuals, and strengthening the use of the tax identification number as a universal access identifier for government services. Keywords: personal income tax, PAYE, Anambra State, revenue administration, compliance.