ABSTRACT

The main thrust of this study is to investigate the impact of indirect tax on revenue in Nigeria using Nigeria as a reference point. Ex-postfactor research design was adopted for the study. Data for this work was sourced using secondary sources, Time series data were generated from the Central Bank of Nigeria(CBN) statistical bulletin and the Federal Inland Revenue Service(FIRS) annual report from 2009-2018. The research concludes that VAT and CED contributes significantly to the Total Tax Revenue ofgovernment ofNigeria and that Indirect tax revenue growth had consistent increase though the growth was not as explosive as that of the Total tax revenue. This work therefore recommends that the Federal Inland Revenue Service should carry out some enlightenment campaign to sensitize the populace about long overdue increase in VAT rate. Perhaps it would be noted that the government cannot easily raise VATfrom 5% to 15% as canvassed by FIRS; increasing VAT by 100%from 5°/o to 10% may be grudgingly accepted by the impoverished populace after some serious sensitization exercise. It is hardly conceivable that people will accept an increasefrom 5% to 15%>.