Impact Of Value Added Tax On Nigeria Revenue Generation And Economic Development (1994- 2015)

ABSTRACT

This study examines the impact of value added tax (VAT) on the revenue generation and

Economic Development of Nigeria. The researcher adopted Ex-post facto research design for

the study. Secondary data were used for the study, covering a period between 1994-2015.

Several statistical tools such as tables, percentages, and simple regression model were

employed, in the analyses of data and testing of the formulated hypotheses. The study revealed

that the value added tax (VAT) has significant positive impact on the Economic Development

of Nigeria, at 5% level of significant. It further revealed that Value Added Tax has statistical

significant effect on revenue generation in Nigeria; that there is positive relationship or impact

of VAT on total tax revenue. Finally, that the effect of Value added tax (VAT) on Real Gross

Domestic Product (RGDP) in Nigeria is signicant. The study recommends among other things

that, Government should sponsor the effort of all financial regulatory bodies, to enable them

draft bills that will ensure the implementation, control and evaluation of value added tax. That

awareness program should be arranged to educate the subjects on the need of supporting

government in their programs as it affect VAT, since VAT affect the RGDP of Nigeria.