ABSTRACT

The study focused on the evaluation ofthe revenue performance of Value Added Tax in Nigeria, it has as its specifically objectives to determine the effect of VAT on change in GDP and to determine the effect of VAT on change on TTR. The study adopted the time series design. Data were obtained secondarilyfrom various CBNstatistical bulletin, FederalInland Revenue Service (FIRS), National Bureau of Statistics (NBS) and the researcher's computation. The descriptive statistics was used to answer the research question while simple regression analysis was used analyse the data. The study revealed that VAT has a positive significant effect on economic growth (GDP) in Nigeria as well as positive significant effect on total tax revenue in Nigeria and by extension on the economic growth and development of the country. The researcher recommended that Governmentshouldput in place adequate measures to ensure thatrevenue generated from VAT are effectively utilized to develop and grow the economy through proper infrastructural development; the government shouldput disciplinary measures in place to sanction corrupt officials as well as establishments that refuses to remit collected VATfunds; for the purpose ofbalanced economic growth, VAT should be structured to take more resourcesfrom the rich than the poor by exempting more items consumed by the poorfrom VAT. Finally, in order to encourage speedy economic growth, government should embark on periodic review oftax incentives to investors (especially foreign investor) so that they can increase their investment in the economy