ABSTRACT

The study focuses on the Effect of indirect tax on revenue generation in Nigeria, The core function of taxation as a revenue generating tool in developing countries has been studied by eminent scholars. Several taxes and levies are collected in Nigeria in order to boost the revenue available to the government. The study aimed to examine the effect of Indirect tax on revenue generation in Nigeria, specifically, to examine the effect of Value Added Tax on Revenue generation in Nigeria, determine the effect of Petroleum profit Tax on Revenue generation in Nigeria, and to ascertain the effect of Custom and excise duties on Revenue generation in Nigeria. Secondary data from the Central Bank of Nigeria statistical bulletin was used for the study also, The study employed the use of descriptive statistics to summarize the data gotten from the study. From the study the regression result between 'VAT, PPT, CED and TR. shows that there is a deviation of the sample examined and the total population by 12.2%. also, there was a significant change of 0.034 with a variation of change at 47.5% indicate that the set of independent variable was as a whole contributing to the variance in the dependent. In determining the relationship between VAT, PPT, CED and TR the study revealed that when the independent variables are held stationary; the TR variable is estimated at 2.454. This simply implies that when the VAT,PPT and CED variables are held constant, there will be an increase in the TR of Nigeria up to the tune of 2.454 units occasioned by factors not incorporated in this model. From the study the first specific objective revealed that Value added tax has no significant effect on revenue generation in Nigeria, the second specific objective showed that petroleum profit tax has a significant effect on revenue generation in Nigeria, while the third specific objective reveled that CED had no significant effect on revenue generation in Nigeria.