ABSTRACT

The objective of this research is to evaluate the impacts of Value Added Tax (VAT) on the Nigeria economy. The in this work identified the reasons for replacing sales tax with Value Added Tax as well the distinguishing factors between withholding tax and VAT. In the course of this research work, questionnaires were administered, data were collected and analyzed through oral interview, and simple percentage for companion, while the use of statistical tool called chi-square was for testing the hypothesis formulated which stood the test of time. The following findings were made; the economic growth of Nigeria has been enhanced through the contributions of Value Added Tax (VAT); the introduction of VAT into the Nigeria economy has led to a level of reduction in the level of unemployment in the country. In view of the above findings, the researcher concludes that, Value Added Tax (VAT) has both positive and negative effects in the Nigeria economy. Finally, the researcher recommends that public enlightenment programmes should be organized at the threetier levels of government to initiate the populace with the operations of VAT; more VAT local offices should be established in all the local government headquarters to enhance the effective checks and balance should be put in place to ensure proper recording and maintenance of account books and records by the Federal Inland Revenue Service (FIRS) for probity and accountability.