AN ANALYSIS OF VALUE ADDED TAX AND ECONOMIC GROWTH AT SUB-NATIONAL LEVEL IN NIGERIA: EMPIRICAL EVIDENCE FROM JIGAWA STATE
Sani Damamisau Mohammed, Nasir Sabo , Ahmed Aminu , Rukayya Tijjani Ibrahim and Yusra Musa Muhammad
Volume 13 Issue 2
Abstract
Value Added Tax (VAT) was introduced by the Federal Government of Nigeria in 1993 with the aim of increasing the revenue base of government thereby making funds available for developmental purposes that will accelerate economic growth. This paper empirically examined the contribution of VAT to the development of the economy of Jigawa State as one of the 36 states of Nigeria. To achieve this aim, time series data on VAT receipts by Jigawa state, and its Gross Domestic Product (GDP) measured in monetary terms are collected from the National Bureau of Statistics (NBS) and Jigawa State Bureau of Statistics (JSBS) 2013-2024 respectively. Combination of Ibn Khaldum’s theory of taxation and public policy analytical framework were used to guide the conduct of the study. The collected data is analysed using simple descriptive statistical tools of tables, figures, and percentages while public policy analytical framework guided the conduct of the study. Results from analyzed data revealed that VAT receipts by Jigawa state on the overall showed increasing trend 2013-2024. Similarly, the GDP of the state showed increasing trend while the proportional contribution of VAT to GDP showed decreasing pattern on the overall. This means while VAT receipt and GDP are increasing, the proportional contribution of VAT to GDP was decreasing therefore, it is accounted by other economic activities especially agriculture. The policy implication is that policy makers in the state should pay more attention to developing agriculture all year round to continue to be boasting the GDP of the state. Keywords: Value Added Tax, Economic Growth, Sub-National Level, Public Policy Framework, Ibn Khaldum’s Theory of Taxation
Download Paper