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The Impact Of Value Added Tax On Nigerian Economic Growth (1994 – 2010)
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1.2 STATEMENT OF THE PROBLEM
The attitude of Nigerians towards
taxation is worrisome as many prefer not to pay tax if given the
opportunity. The economy continues to lose hung amount of revenue
through the unwholesome practice to tax avoidance and tax evasion this
loss of revenue can change the fortune of many economies. Particularly,
developing countries like Nigeria. This problem has been lingering for
so long which urgent attention and solution is over due to the cost of
collecting tax in Nigeria (both social and economic cost) is too high to
the extent that if left unchecked the cost may soon outweigh the
benefit or value derived from such operation and that will not the
appropriate for the system. In Nigeria, VAT is one of the instruments
the federal government introduced to generate additional revenue. Yet,
most prominent Nigerians and interest groups had spoken against its
introduction. It would appear that VAT is froth with some problems. For
the purpose of this paper work we shall examine the implication of VAT
on revenue generation in Nigeria and how VAT affect the economic growth
in Nigeria.
1.3 RESEARCH QUESTIONS
This research work is set to answer the research question below.
1. What is the impact of VAT on economic growth?
1.4 OBJECTIVE OF THE STUDY
The following are the objectives of the study:
1. To know the impact of value added tax on economic growth.
1.5 STATEMENT OF HYPOTHESIS:
The following assumptions which are subject to testing are made for the purpose of this research work.
HO1: O1 VAT has no Impact on economic growth.
1.6 SIGNIFICANCE OF THE STUDY:
The
study will assist the government in policy formulation as it relates to
value added tax. It will also help to broaden the nation‟s revenue base
thereby making it less dependent on oil export.
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ABSRACT - [ Total Page(s): 1 ]This paper analyzed empirically the impact of Value Added Tax (VAT) on economic growth in Nigeria from 1994-2010. Data was collected from Central Bank of Nigeria (CBN) statistical bulletin. Ordinary Least Square techniques was used to estimate the model, which reveals a strong positive significant impact of VAT on economic growth in Nigeria. Therefore, this study recommends that the VAT should not be high on the infant industries, so as to enable them grow. ... Continue reading---
