Value Added Tax and Economic Performance in Nigeria

AFRAG053

Value Added Tax and Economic Performance in Nigeria Onuche, Sarah-Joy Eleojo

Correspondence: sarah.edibo@gmail.com

+2347038061139

Okezie, Stella O. Onulaka, Uzoamaka Faith

Abstract

Value Added tax has become a veritable tool for government in addressing the constraint on its fiscal capacity to address public needs posed by dwindling oil revenue in Nigeria. The study therefore investigates Value Added Tax (VAT) and Economic Performance in Nigeria. The study objective was to examine the  impact

of  value  added  tax  on   Gross  Domestic and inflation rate in Nigeria. Time series data from 1994 – 2019 obtained from the statistical bulletin of Central Bank of Nigeria (CBN) was utilized in examining this relationship. Diagnostic tests were carried out to ascertain the data properties. Findings from the study reveal a significant and positive relationship between VAT, GDP and FCR but a negative relationship between VAT and inflation rate in Nigeria. It is recommended that government should

tap into this by ensuring that policies put in place further enhance its capacity to grow VAT while keeping inflation within a tolerable margin.

Key words: Value added Tax, Federally Collected Revenue and Inflation

Leave a Reply

Your email address will not be published.