ABSTRACT

Value added tax (VAT) which has been in existence since 1994 in Nigeria was seen by many as a fiscal poi icy that may not succeed. On the contrary, this notion was proven wrong by success of the federal hoard of Inland Revenue service in the administration of VAT. The main objective of this study is to examine tile contribution of Value Added Tax in Nigeria. File specific objective is to determine impact of Value Added tax on GDP. The study adopted descriptive research design. Both primary and secondary data was collected. Tile primary data was collected through the use of questionnaire and information about tile secondary data was obtained from statistical bulletin. The population of tills study comprised the entire stall of FIRS lmo state revenue unit. Random sampling design was used to select respondents for this study. A total of forty (40) questionnaires were administered. The survey findings reveal that tax administration and collection is far between expectations due to lukewarm attitude of tile government. It was also found that Value Added Tax has a significant contribution on revenue on generation ill Nigeria. On a final note, the study of Value added tax in Nigeria can be said to be a success. In view of the studies carried out which enable us establish tile relevant of the contribution of vale Added Tax as a source of government revenue, it is pertinent that I make some recommendations that will help government consolidate on the effort so far. and to make it even mare effective in contribution of Value added Tax system in Nigeria. Finally, the work treated die contribution of VAT to government revenue and tile expectation of government towards increased revenue from VAT.