International Journal of Business Marketing and Management (IJBMM) Volume 7 Issue 5 Sep-Oct 2022, P.P. 138-147 ISSN: 2456-4559 www.ijbmm.com International Journal of Business Marketing and Management (IJBMM) Page 138 Effect of 2011 Personal Income Tax (Amendment) On Revenue Generation in Anambra State Amahalu, Nestor Ndubuisi 1 ; Obi Juliet Chinyere 2 ; Okudo, Chijioke Louis 3 ; Okafor, Obumneme Obiora 1 Department of Accountancy, Nnamdi Azikiwe University Awka, Anambra State, Nigeria Department of Accounting, University of Nigeria Nsukka, Nigeria Department of Law, Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Nigeria Abstract: This study seeks to identify the effect of 2011 personal income tax on revenue generation in Anambra State. The study specifically seeks to ascertain the extent to which personal income tax revenue affect the development of Anambra state; identify the difference between tax revenue generated in Anambra state before and after the 2011 personal income tax Act and ascertain the effect of 2011 personal income tax Act on the economic growth in Anambra state. The study adopted correlational survey design. The population was one hundred and fifty-two drawn from both federal and state boards of internal revenue in Anambra State. The determined sample size was one hundred and ten with the adoption of Taro Yamane. Validity and reliability of the instrument were tested. Pearson Product Moment correlation was used to test the hypotheses with the aid of SPSS version 20. The findings revealed that personal income tax revenue has no significant effect on the development of Anambra state, there is significant difference between tax revenue generated in Anambra state before and after the 2011 personal income tax Act; personal income tax Act has significant effect on the economic growth of Anambra state. It was recommended that Anambra State government should rise to the challenge of boosting their revenue base by ensuring that all available sources of revenue are adequately tapped and tax administration and collections become more effective and efficient. Keywords: Tax Revenue, Personal Income Tax, Economic Growth I. Background to the study In both developed and developing economies, government has to play an active role in enhancing economic development. In this sense, fiscal policy has been employed as a vital instrument in protecting economic development. A key aspect of fiscal policy is taxation. System of taxation can contribute to societies in three main areas: those of Revenue, Redistribution and (Political) representation. In Nigeria, the fiscal operations are carried out by many units of Governments, which in geo-political jargon can be called jurisdictions. Some fiscal functions are operated on a more centralized level while others are decentralized. Each of the three major fiscal functions namely, allocation, distribution and stabilization have economic reason to be operated by each of Government. Taxes are imposed to regulate the production of certain goods and services, production of infant industries, control business and curb inflation, reduce income inequalities amongst others. Taxation is recognized as a very important tool for national development and growth in most societies. It can be viewed as a major vehicle for long term development of infrastructure of the state (Okoye, Amahalu, Obi & Iliemna, 2019). Personal income tax is tax levied on the income of individuals or partnership and is divided into two major groups when determining the statutory income of individual which are earned and unearned income. Section 1 of the personal Income tax Act (PITA), 1993 which repealed the income Tax management Act (ITMA), 1961 provides the there is hereby imposed a tax on the income of (a) individuals, communities and family and (b) trustees or estate, which shall be determined under and be subject to the provision of this Decree”. Thus, the personal income Tax Act imposes taxes on individuals who have taxable incomes, partnerships, trustees and executors of settlements, and on family and community incomes (Aruna, Oshiole & Amahalu, 2020). Personal income tax (PIT) according to Decree No. 4 of 1993 is a tax imposed on the incomes of individuals, communities and families. It is also charged on the incomes due to a trustee or an estate. Since