IMPACT OF VALUE ADDED ON NIGERIA ECONOMY GROWTH (A STUDY OF ENUGU URBAN, ENUGU STATE)

ABSTRACT This study was carried out to examine the impact of value added tax (vat) on the Nigeria economy. The study specifically highlighted its objective which is the extent to which the tax in investigation, VAT will imply to the tax payers and final consumers. This the study is designed to investigate the impact which value added tax will have on the tax payers. And finally, the study examine the relationship between the tax and those paying it in the Nigerian context of tax system in Enugu Urban, Enugu State. The study employed the survey descriptive research design. A total of 77 responses were validated from the survey. From the responses obtained and analyzed, the findings revealed that valued added tax (VAT) is tax based on consumption of goods and services. To this end, there is an effect on the price of variable goods and services and its impact in which value added tax will have on the tax payers. The study recommend that the government tax policy should shift more to indirect tax due to the expansionary and non- distortionary nature. Besides, That Governments agencies, corporations and ministerial departments are advised to be loyal, disciplined and judiciously utilize public funds derived from VAT by providing infrastructural facilities needed to improve the economic activities of Nigeria and thus improve GDP.