ABSTRACT

The study investigated the effect of value added tax on economic variables in

Nigeria. Secondary data sourced from CBN statistical bulletin from 1999-2015 was

used for the analysis using simple regression method of data analysis to ascertain

the relationship between the variables. The results of the analysis revealed that

value added tax has long run equilibrium relationship with both real gross domestic

product and total tax revenue in Nigeria. Therefore the study concluded that value

added tax has significant effect on both economic growth and total tax revenue in

Nigeria. Based on the findings of this study, it is recommended that alternative

means to improve gross domestic product should be sought while efforts should

be made to improve the tax revenue base of the country. On the same hand,

Government should intensify its efforts on the collection and administration of

value added tax while tax agencies should ensure that there are no loopholes in

the collection of value added tax.