ABSTRACT

In this research work, chapter one dealt with the introducion, the background of the

study, the statement of the problem, hypothesis, objective of the study ec. The

objective of the study is to determine the effect of value added tax (VAT) on the

consumption pattern in Nigeria. However other specfIc objectives includes; To

determine the effeit of VAT on consumption pattern of household's in Nigeria; To

ascertain the extent at which VAT affects disposable income in Nigeria; To evaluate

the effect of VAT on total household expenditure in Nigeria.. Chapter two dealt with

the literature review of dfferent authors, textbooks and related journal were

reviewed. The chapter three focus on the research methodology use, the research

designed employed is the ex-post-facto type of research design which guides the

researcher in his scientific inquiry, and analysis. Data were sourced using

secondary data such as: Annual reports, accounts of th Nigerian stock exchange

etc., and from secondary sources. Analyses of data and testing of hypotheses were

done through the aid ofstatistical tools such astables, Regression model. In chapter

four the findings shows that. Value added tax has a great influenc' on

consumption pattern in Nigeria, looking at the high values of the f-statistics and

p-value that was derived from the result. The researcher concluded that VA'l'

predominant factor that affects consumption pattern in a large scale. In other words

the reduction in VAT increases the consumption pattern and vice versa.