ABSTRACT
The introduction of the Value Added Tax in Nigeria in 1993 seemed to be the
"jocker", the government needed to checkmate the continuous dwindling fortunes
of its non-oil generated revenue. And since introduction, VAT appears to have
made remarkable success in this area; and thus, establishing itself as a veritable
instrument for economic recovery and stability. It is however felt by many that VAT
ought to have achieved much more success than it did except for the numerous
problems/difficulties that have consistently limited its operational efficiency in
Nigeria. These problems range from inadequate/poor policy framework and
implementation to various administrative bottlenecks. This project will investigate
the fundamental nature of these problems, determine the extent to which VAT has
been as an instrument of economic stability and development in Nigeria. In
carrying out this investigation, three hypothesis have been formulated based on
perceived relationship between variables in the identified problems areas. The
researcher also selected data from both primary and secondary sources using
personal interview, questionnaire surveys and physical observation ad data
collection instruments. These data were statistically analyzed, using simple
regression and correlation analysis as a test statistic. Based on the analysis and
test conducted, the following major findings were made: That there is strong
relationship between VAT and federally collectable revenue in Nigeria. There are
significant factors militating against the effective management of VAT in Nigeria.
VAT is a better revenue generator to government than sales tax. VAT is an
effective instrument of economic stability and development in Nigeria. That with a
strong check and balance in the VAT administration there will be positive growth
in the economy which will foster development in Nigeria. Base on the above
findings, the researcher wish to conclude that the introduction of VAT in Nigeria is
a worthwhile venture, and that government should positively address the identified
problems with a view to proving lasting solutions to them. The researcher
therefore makes the following specific recommendations. The Government should
endeavour to provide necessary working tools such as telephones, journals,
vehicles and comfortable office accommodations for various VAT offices. Also
installation of computers in order to facilitate the documentation, analysis and
storage of data to obtain improved tax yield to the nation and information retrieval
when needed. Qualified staff should be recruited to man prominent positions and
staff should be given the opportunity of being trained in different positions and
areas as to be able to perform the assigned duties creditably. The general public
should be educated on the importance of VAT. This will appeal to their conscience
and enhance and enhance prompt payment. In addition, private individuals who
are not assessed presently will find it as a necessary obligation to pay tax.
ANSELM, M (2021). Evaluation Of The Contributions And Effects Of Value Added Tax On Government Revenue And Economic Development In Nigeria. Mouau.afribary.org: Retrieved Oct 31, 2024, from https://repository.mouau.edu.ng/work/view/evaluation-of-the-contributions-and-effects-of-value-added-tax-on-government-revenue-and-economic-development-in-nigeria-7-2
MEIWY, ANSELM. "Evaluation Of The Contributions And Effects Of Value Added Tax On Government Revenue And Economic Development In Nigeria" Mouau.afribary.org. Mouau.afribary.org, 07 Jun. 2021, https://repository.mouau.edu.ng/work/view/evaluation-of-the-contributions-and-effects-of-value-added-tax-on-government-revenue-and-economic-development-in-nigeria-7-2. Accessed 31 Oct. 2024.
MEIWY, ANSELM. "Evaluation Of The Contributions And Effects Of Value Added Tax On Government Revenue And Economic Development In Nigeria". Mouau.afribary.org, Mouau.afribary.org, 07 Jun. 2021. Web. 31 Oct. 2024. < https://repository.mouau.edu.ng/work/view/evaluation-of-the-contributions-and-effects-of-value-added-tax-on-government-revenue-and-economic-development-in-nigeria-7-2 >.
MEIWY, ANSELM. "Evaluation Of The Contributions And Effects Of Value Added Tax On Government Revenue And Economic Development In Nigeria" Mouau.afribary.org (2021). Accessed 31 Oct. 2024. https://repository.mouau.edu.ng/work/view/evaluation-of-the-contributions-and-effects-of-value-added-tax-on-government-revenue-and-economic-development-in-nigeria-7-2