ABSTRACT

On the 1st of December 1993, a new term, VAT was added to the Economic of Nigeria. VAT which stands for Value Added Tax is a multistage consumption tax imposed on value added to goods such as food, newspaper and productions carried out in Nigeria economy as they are rendered. The introduction of VAT gave credence to the importance attached to taxation as one of the major sources of revenue in the country and as an agent of social change. This study is therefore an attempt to appraise the problems and prospect of value added tax as an instrument of revenue of generation in Nigeria economy. In carrying out this research, the researcher had to go through all the available material on this subject and this involved in reviewing textbooks, journals, magazines and articles dealing on value added tax and other related topics. This review was aimed at giving the readers a fair idea of views drawn out from other writers on the subject matters for the purpose of the analysis, different methods were used for the collection of data such as oral interviews, questionnaire, observation as well as surveys. These formed the source of primary and secondary data collection. The hypotheses formulated were subjected to test of significance using the chi-square test. Some recommendations were made in the last chapter, which could help harness, the gains of tax and as well as to ameliorate the unidentified negative effects of the tax. At the end of the study, the following conclusions were made: There is no significance relationship between Value Added Tax (VAT) and the Nigeria Economy. There is no difference in opinion of respondents on the economic development.