IMPACT OF VALUE ADDED TAX (VAT) ON ECONOMIC GROWTH IN NIGERIA

Date

2020-12-02

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DEPARTMENT OF BUSINESS ADMINISTRATION FACULTY OF ADMINISTRATION NASARAWA STATE UNIVERSITY, KEFFI

Abstract

This study examined the impact of Value Added Tax (VAT) on economic growth in Nigeria. Specifically, the study examined the perception of the VAT payers on Value Added Tax since inception of VAT in Nigeria, assesses the impact of adequate accounting procedures on VAT efficiency and also investigated if VAT, Petroleum Tax, Excise Duties, and Company Tax jointly has significant impact on GDP. Data was collected with the aid of a structured questionnaire administered to two hundred and fifty-eight (258) respondents randomly selected from different sector of economic. While secondary data was obtained from FIRS, CBN bulletined, and other relevant document. From the analysis of data performed using multiple regression analysis and Pearson Product Moment Correlation Coefficient, the relationship that VAT, Petroleum Tax, Excise Duties, and Company Tax had with economic growth was established. Study discovered that since inception of VAT in Nigeria there has been considerably high rate of acceptance and payment. It was also shown that adequate accounting procedure spurs VAT efficiency in the country. The study also revealed that VAT, Petroleum Tax, Company Income Tax and Excise Duty were jointly and independently have a significant impact on Gross Domestic Product, it was concluded that the level of VAT in Nigeria has influence on social welfare of the populace. The study recommended that government should ensure to embrace strategies that will help to maintain adequacy of accounting procedure in the tax system in order to spur VAT efficiency and also to increase the number of VAT agencies in the country to boost VAT productivity.

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Citation

A RESEARCH SUBMITTED TO THE SCHOOL OF POSTGRADUATE STUDIES, NASARAWA STATE UNIVERSITY, KEFFI, IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTERS IN BUSINESS ADMINISTRATION (MBA)