This research work titled “Effect of Income Tax on Investment in Capital Market” has been setup by the researcher after observing the application of reviewed income tax in Nigeria and how it affect the economy.
In carrying out this research, data was obtained from primary and secondary data through the use of textbooks, journals etc.
The main objective of this research work is to investigate the effect of the reviewed income tax on investment in capital market and how it encourages savings and investment in Nigeria economy. It was observed that, taxation on income has been inadequately reviewed and has negative effect on employment and inflation, its long run effect is the inefficiency it has on capital intensity of the economy and resources allocation.
From the above observation, it is therefore recommended that, income tax should exempt savings and investment while reviewing tax system of government.