ASSESSING THE CONTRIBUTION OF VAT TO THE REVENUE PROFILE OF NIGERIAN GOVERNMENT

ABSTRACT

Assessment of the contribution of VAT to the revenue profile of Nigeria is the Works contained in this Project. It contained an indepth evaluation of the contribution of VAT to the revenue profile of Nigeria, the extent to which VAT proceeds impact on the revenue profile of the Nigerian government, to determine the extent to which the Federal government policies affect the contribution of VAT to the revenue profile of Nigerian government, to determine the effectiveness and efficiency of VAT administrations in Nigeria, as well as to determine the extent to which proper public education on the importance of paying tax influence the contribution of VAT in Nigeria. Historic data from FBIR, Enugu was used as secondary data. Primary data were collected through questionnaire administration prepared for the tax payers and tax officers. Personal interview were equally conducted for some staff of FBIR, Enugu and selected tax payers within Enugu metropolis. Correlation analysis and chi-square were used as test techniques to test hypothesis. Infinite population formular was also used to determine the sample size. It was observed, after series of tests that Value Added Tax does not contribute immensely to the revenue profile of Nigeria; the federal government policies does not affect the contribution of VAT to the revenue profile of Nigeria government; VAT administrator are inefficient and ineffective; proper pubrlic education on the importance of paying tax does influence the contribution of VAT in Nigeria. Based on these findings, the researcher recommends that the federal government should set new laws and policies, to enhance effectiveness and efficiency in the administration of VAT in Nigeria and also minimize the fraudulent activities of tax official.