ABSTRACT
The study
investigatedeffect ofvalue added tax on the economy ofNigeria. It utilized
secondary data from 1994-2018 extractedfrom CBN statistical bulletin, National
Bureau ofStatistic and various reports ofthe Federal Inland Revenue Service.
The study was prompted by the need to examine whether value added tax has made
an effect from its inception. It extracted real gross domestic product and
total tax revenue as proxies for economy while value added tax revenue was used
as the independent variable. It adopted expostfacto research design because the
data are in existence. It used the augmentedDickey—Fuller unitroot test to
ascertain whether the variables are stationary andfound a combination of 1(1)
and 1(0). The ARDL Bounds test regression technique was engaged to determine
the relationship ofthe variables. There is long run equilibrium relationship
between value added tax and economic growth in Nigeria. There is positive
significant short run effect ofvalue added tax on economic growth in Nigeria
but not significant in the long run. There is significant effect of value added
tax on percent change in real gross domestic product in Nigeria. It was
established that value added tax has positive significant relationship with
total tax revenue both atshortrun and long run equilibrium levels. Value added
tax has significant effect on total tax revenue in Nigeria. It concluded that
value added tax has significant effect on economic growth ofNigeria and
recommends that government should intensify efforts to enhance the generation
of value added tax based on percentage increases on yearly basis to influence
economic growth. The Nigeria tax system should be computerized and have a
comprehensive data basefor all vatable businessesso as to increase revenue on
VAT and total tax revenue.
CHIEKWE, C (2024). “Effect of Value Added Tax on Economic Growth in Nigeria (1994-2018):- Chiekwe, Mildred A. Mouau.afribary.org: Retrieved Oct 30, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-value-added-tax-on-economic-growth-in-nigeria-1994-2018-chiekwe-mildred-a-7-2
CHIEKWE, CHIEKWE. "“Effect of Value Added Tax on Economic Growth in Nigeria (1994-2018):- Chiekwe, Mildred A" Mouau.afribary.org. Mouau.afribary.org, 07 Aug. 2024, https://repository.mouau.edu.ng/work/view/effect-of-value-added-tax-on-economic-growth-in-nigeria-1994-2018-chiekwe-mildred-a-7-2. Accessed 30 Oct. 2024.
CHIEKWE, CHIEKWE. "“Effect of Value Added Tax on Economic Growth in Nigeria (1994-2018):- Chiekwe, Mildred A". Mouau.afribary.org, Mouau.afribary.org, 07 Aug. 2024. Web. 30 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-value-added-tax-on-economic-growth-in-nigeria-1994-2018-chiekwe-mildred-a-7-2 >.
CHIEKWE, CHIEKWE. "“Effect of Value Added Tax on Economic Growth in Nigeria (1994-2018):- Chiekwe, Mildred A" Mouau.afribary.org (2024). Accessed 30 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-value-added-tax-on-economic-growth-in-nigeria-1994-2018-chiekwe-mildred-a-7-2