IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 2 NO. 4 2016

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The Effects of Value Added Tax on Government’s Revenue Generation Profile in Nigeria: A Conceptual Approach

Oseni, Abubakar Idris

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Abstract

The paper sought to conceptually examine the effects of Value Added Tax (VAT) on government revenue generation profile in Nigeria being one of the sources of government revenues and also an important variable in fiscal policies. This is a library study where existing literature on the subject matter were reviewed so as to ascertain the effects of value added tax on government’s revenue generation and how it can be enhanced so as to boost the government revenue generation profile in Nigeria in an effective and efficient manner. The paper concluded that value added tax has positive effect on government revenue generation profile in Nigeria thereby contributing to its economic growth and development. The paper recommended that government should improve the living condition of citizens by the judicious utilization of value added tax proceeds in an effective and efficient manner. The paper also recommended that the value added tax bases be widened to bring the informal sector into the value added tax net so as to stem possible evasion even by the so faithfully complying.

keywords:

Effectiveness, Fiscal policy, Value added tax, Revenue

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