“Impact of value added tax (VAT) on economic development of Nigeria:- Ifediora Stella C.

ABSTRACT

The study examined the effect of value added tax on economic development of Nigeria. Tire objectives ofthe study are to examine the effect of value added tax on gross domestic product of Nigeria, to determine the effect of value added tax on inflation rate of Nigeria and to examine the effect of value added tax on unemployment rate of Nigeria. To achieve the objectives ofthe study, ex-post facto design was adopted. The researcher adopted secondary data through the use CBN statistical bulletin. In testing the hypotheses, regression analysis was used. The findings revealed that Value added tax has a significant effect on gross domestic product of Nigeria. The findings further revealed that Value added tax has a significant effect on inflation rate of Nigeria. The researcher recommends that the management and administration of VAT in Nigeria should be done in a manner that it will not have adverse effect on the economy such as distorting the forces of demand and supply. The researcher further recommends that the revenue generated from VAT should be used for infrastructural development ofthe country in order to 1 . increase the economic growth ofthe country.