Thesis Abstract

Abstract
Value Added Tax (VAT) has been implemented in Nigeria since 1993 and has become an important source of revenue for the government. This research project aims to analyze the prospects, problems, and contributions of VAT to the Nigerian economy. The study will examine the potential benefits of VAT in terms of revenue generation, economic development, and fiscal sustainability. It will also investigate the challenges and limitations faced in the implementation of VAT in Nigeria, including issues related to compliance, administration, and enforcement. The research will employ a mixed-methods approach, combining both quantitative and qualitative data analysis. Quantitative data will be collected from official government reports, economic indicators, and tax revenue statistics to assess the impact of VAT on government revenue and economic growth. Qualitative data will be gathered through interviews with tax experts, government officials, and business owners to explore the practical implications of VAT implementation on businesses and the economy. The findings of this study are expected to provide valuable insights into the effectiveness of VAT as a revenue-generating mechanism in Nigeria. It will contribute to the existing literature on tax policy and economic development by offering a comprehensive analysis of the role of VAT in the Nigerian economy. The research will also offer recommendations for improving the implementation of VAT, addressing key challenges, and maximizing the contributions of VAT to economic growth and development. Overall, this research project will shed light on the prospects, problems, and contributions of VAT to the Nigerian economy. By examining the impact of VAT on government revenue, economic growth, and fiscal sustainability, the study will provide policymakers, tax authorities, and business stakeholders with evidence-based recommendations for enhancing the effectiveness of VAT implementation in Nigeria. This research is timely and relevant given the importance of VAT as a revenue source and its potential role in supporting economic development in Nigeria.

Thesis Overview

1.0 Introduction

The implementation of Value Added Tax (VAT) in Nigeria started on 1st January, 1994. VAT is a tax on consumption. it is suffered when a person ingest goods and services. The enabling Act is the value added tax act 102 of 1993 (VATA 1993).

Before the final introduction of the VAT in January 1994, the idea of introduction VAT in Nigeria came from the report of the study group set up by the Federal Government in 1991 to review the entire Tax system. VAT was proposed and a committee was tax set up to carry out feasibility studies on its implementation. And since introduction, VAT has yielded great revenue to the purse of the government.