THE CONTRIBUTION OF VALUE ADDED TAX TO FEDERALLY COLLECTED REVENUE IN NIGERIA: A TREND ANALYSIS 1994-2022
Sani Damamisau Mohammed ,Ibrahim Ahmad Kassim,Nura Alhaji Suleiman ,Balikis Sallau Olamide ,Kawthar Moshuud Olamide and Mustapha Olaoluwa Yusuf
Volume 4 Issue 1
Abstract
The evaluate the contribution of VAT to total Nigerian government revenue 1994-2022. To achieve this aim and objective, quantitative secondary data on Valued Added Tax allocations to federal, states and local governments and total government revenue is collected from the annual publication of the Central Bank of Nigeria. The collected data is descriptively analysed using tables, figures, charts and percentages to demonstrate the contributions of VAT to total government revenue 1994-2022. Similarly, test of Analysis of Variance was carried out on collected data to statistically determine contribution of VAT to total Nigerian government revenue over the period of the study. Triangulation of optimal taxation and Laffer curve theories guided the conduct of the study. Results from the study revealed that VAT is making contributions to total government revenue over the period of the study. The policy implication is that VAT has actually proven effective in making more revenue available to Nigerian government. Generation of more revenue from VAT by government means VAT is making more funds available to the government to execute developmental projects for national development. Consequently, this study is recommending that VAT should be strengthened to global best practices in terms of the rate, effective and efficient assessments and collections to continue generating more revenue to enhance further national development. Keywords: Population, Infrastructure, Value Added Tax, Optimal Taxation Theory, Laffer curve theory
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