Abstract:
This study was carried out to analyze the value added tax (VAT) and its effect in the
economy and to identify areas of shortcomings and to make recommendations for
corrective measures. The scope of the study was limited to Enugu State. Data were
collected based on these objectives: To asses the response of vatable person (taxpaver) To increase the awareness of vatable public. i. To assess the impact of value added tax on final consumers. "To find out if significant correlation exist between VAT Revenue and GDP literature reviewed from relevant texts and journals revealed that VAT has been exceeding its target revenue since commencement and that state government expenses have been cleared to some extent with VAT revenue. The study further revealed that VAT revenue is not tied to a specific capital project and that there is oophole in the VAT Decree under registration of taxable person. The study also
howed that VAT has only added to the multiple tax system operational in Nigeria.
i nd further revealed that VAT has the propensity to increase prices, deplete
eople's finances and reduce their purchasing wer; contribute to inflation and
roduce multiplier effects on all sec s of the economy including health. Furthermore, the study also reveale at VAT is a bett option to other taxes andhat tax-payer render returns R mptly authority. These finding were examined using descriptive survey, questionnaire and chi-square to test the ivpothesls formed. A s 40 as selected by simple random sampling. I )ata was analyzed nted ng percentaqes and chi-square, which gave
I 'ise to the findi finding,/~ mendations and suggestions were made.
