The Analysis of Value Added Tax And Its Impact on The Nigeria Economy

Abstract

The Purpose of this study is to investigate the impact of VAT on the Nigeria economy as it relates to how it can improve government revenue and throws more light in its contribution to the economic growth and development of Nigeria. In addition to the oral interview and questionnaires distributed, was a review of study of literature relating to the impact, administration and collection of VAT in Nigeria. Simple percentages, bar chart, pie chart, and chi-square X2 = S(O-E)2 E Were used for data analysis on which purposive sampling technique was adopted. The findings shows that A,VAT has economic impact in consumption pattern in Nigeria B, VAT has positive impact on the economy of Nigeria. C, The payment of VAT has improved the prospects of businesses, organizations and industries in Nigeria and the study strongly recommends that: i. There should be functional VAT offices in every council area to coordinate a vigorous campaign to educate people and seek their cooperation. ii. The above will no doubt erode the negative attitude that some of the taxpayers have developed towards VAT. iii. Government should make adequate provision, for retrieving the VAT proceeds from companies and other collection agents.