ABSTRACT

This study examines the impact of indirect tax revenue on economic growth in Nigeria. The study uses value added tax revenue (VAT) and custom and excise duty revenue (CED) as independent variables and economic growth was proxy with gross domestic product growth rate as the dependent variable. The study employ secondary data collected from Central Bank of Nigeria statistical bulletin for the period covering 1997 to 2016 for the empirical analysis using the convenient sampling techniques. The research design is ex-post facto and the data were analyzed using descriptive statistics and multiple regression techniques. The results revealed that value added tax (VAT) and custom and excise duties (CED) had a significant and positive impact on gross domestic product growth rate. The Durbin- Watson positive value indicates the absence of autocorrelation in the model. Hence, the study recommended that indirect taxes should be taken seriously by the government as a revenue raising means. And masses should be sensitized on the need to be tax compliant so as to promote growth of the economy. Keywords: VAT, CEXD' Revenue; Gross domestic product.