IMPACT OF VALUE ADDED TAX TO THE GROWTH OF NIGERIAN ECONOMIC

ABSTRACT This research examines the Contribution of value added tax on the economic growth of Nigeria. The researcher adopted a quantitative design and both historical and ex-post factor research design was adopted. The researcher uses only the secondary sources of data obtained from the Nigeria Bureau Statistics (NBS) and CBN’s statistical bulletin publication. The empirical result shows that the value of VAT had a positive significant impact on economic growth (GDP) in Nigeria. The findings also revealed that value added tax had a positive and significant impact on total revenue in Nigeria; and by extension on the economic growth and development of the country. Total revenue growth over the period also had a significant impact on economic growth as proxies by Gross Domestic Product. The study employed both descriptive and econometric techniques to determine the relationship between value added tax and economic growth in Nigeria. Hence it’s concluded therefore that value added tax (VAT) as a subset of the entire tax system in Nigeria has significant impact on the economic growth of Nigeria. It has greatly contributed to the total revenue of this nation by reducing tax evasion by many people.