Impact Of Value Added Tax On Revenue Generation In Nigeria (1995-2017)

ABSTRACT

This study examines the impacts of value added tax on revenue generation in

Nigeria (1999-201 7). However, the specflc objectives were to, examine the

relationship between value added tax and total revenue generation in Nigeria, to

find out whether Value Added Tax contributes signfIcantly to the Gross Domestic

Product. The study made use of ex-post facto research design and covered the

Nigerian economy as a whole. The study adopted Total government revenue and

Gross domestic product as proxies for Revenue generation and made them serve as

the dependent variable; on the other hand, the study adopted Value added tax as

the independent variable. The study employed the use of ordinary least square

regression to analyze the data. Results revealed that a positive relationshz exists

between Total government revenue Value added taxes In Nigeria. Thus VAT has a

signflcant impact on Total government revenue In Nigeria. The study also reveals

that a VAT has a signIcant and positive effect on Gross domestic product In

Nigeria. The study then recommended that since Value added tax has positive and

sign ficant impact on Total government revenue, government should always use

this tool as an important tool offiscal policy of the government, in other to better

and develop the country. Also there should be closer monitoring of VAT collection

and remittances so as to improve country 's revenue generation method in other to

improve the standard of living.