Thesis Abstract

Abstract
Value Added Tax (VAT) is a consumption tax imposed on goods and services at each stage of the production and distribution chain. In Nigeria, the introduction of VAT in 1993 marked a significant shift in the country's tax system, moving towards a more broad-based and consumption-oriented tax regime. This research project explores the implications of Value Added Tax in the Nigerian economy. The study investigates the impact of VAT on government revenue generation, economic growth, inflation, and consumer behavior in Nigeria. It examines the effectiveness of VAT as a revenue generation tool for the government, analyzing its contribution to the overall tax revenue and its role in financing public expenditure. The research also delves into the efficiency of VAT administration and compliance in Nigeria, identifying challenges and proposing recommendations for improvement. Furthermore, the study assesses the impact of VAT on economic growth by analyzing its effect on investment, consumption, and overall economic activity. It explores the relationship between VAT revenue and economic growth, considering factors such as tax rates, tax base, and compliance levels. The research also investigates the incidence of VAT on inflation in Nigeria, examining how changes in VAT rates affect price levels and consumer purchasing power. Moreover, the study examines the implications of VAT on consumer behavior and welfare in Nigeria. It analyzes how VAT affects consumer spending patterns, savings, and overall welfare, considering income distribution and social equity issues. The research also explores the regressive nature of VAT and its impact on low-income households, proposing policy measures to mitigate any adverse effects on vulnerable groups. Overall, this research project aims to provide a comprehensive analysis of the implications of Value Added Tax in the Nigerian economy. By examining the impact of VAT on government revenue, economic growth, inflation, and consumer behavior, the study offers valuable insights for policymakers, tax authorities, businesses, and the general public. The findings and recommendations from this research can inform policy decisions aimed at enhancing the efficiency, equity, and effectiveness of VAT in Nigeria, ultimately contributing to sustainable economic development and fiscal stability.

Thesis Overview