Effect of Value Added Tax on The Performance Manufacturing Sector of The Nigeria Economy

Reference code: C064

ABSTRACT

This research project was aimed at investigating the relationship between Value Added Tax  and the performance of the manufacturing sector of the Nigeria economy. in order to achieve the objectives, one hypothesis was formulated and data collected from secondary. the data collected was tested using simple regression analyses on SPSS Version  21. our findings showed that there is a positive and statistically significant relationship between VAT and the performance of the manufacturing sector of the Nigeria economy.  we therefore concluded that: Value Added Tax is a very important source of revenue generation for the federal government of Nigeria. We also concluded that Value Added Tax contributes significantly to the growth of the economy in general and the manufacturing sub-sector specifically. Finally, we conclude that the performance of the manufacturing subsector in the recent past can to large extent be attributed to Value Added Tax revenue generation. On the basis of our findings and conclusions above, we recommended that: the government should add more effort in collecting Value Added Tax revenue. We also recommend that the government should provide public sensitization programs educating the populace on the need and importance of paying tax.  Finally, it was also recommended that the federal government through FIRS provide adequate training for the tax collections staff of the service in order to improve on their performance in VAT collection and reduce to the barest minimum the incidences of default which is quite prevalent.

INTRODUCTION

............... It was shifted to January 1st 1994. VAT replaced the former existing sales tax carried out by the different state3 governments, the wages first implemented in 1986 and operated under the federal government legislated degree No.7, of 1986. VAT replaced the sales tax because of the following reasons. VAT is neutral in that a considerable part of the new tax is to be realized from imported goods unlike the sales tax that targets only locally produced goods based on the general consumption behavior.
VAT is a consumption tax on all economic operation in the country including imports and has a zero rate for export. The federal Inland Revenue service (FIRS) is the main body charge with the administration of VAT in Nigeria custom service (NCS) for the collection of VAT on imports and the help of VAT on the locally produced goods and services. VAT has a single low rate of 5% with a zero rate for exports and is borne sole by the final consumers of VAT able goods and services like any other indirect tax, some essential goods and services are exempted from VAT that is they are not VAT able.
Value Added Tax is one of the major tools for sustainable development in Nigeria being a means of providing capital to the government in order to finance various development projects. VAT has improved the social and the macro-economic level of the economy. A look at the profile of various taxes administered and other means of earning revenue to the government (excluding revenue from petroleum) for the past seven years before the introduction of VAT, one can argue that VAT has contributed a greater percentage to the development of the country.
VAT proceeds are usually shared among the three tiers of government namely federal, State and local governments in order to help them to undertake developmental projects such as roads, health care facilities, education, security of the nation etc. instead of resorting to external or domestic borrowing. It also helps in accelerating economic growth by mobilizing privately held resources which automatically boosted public revenue, enhanced consumption patterns and generate savings which helped in a greater deal in sustaining the economic development of the country. ............. FOR ACCESS TO THE FULL PROJECT WORK, USE THE ORDER NOW! BUTTON BELOW

TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
1.1 BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF RESEARCH PROBLEM 3
1.3 PURPOSE OF THE STUDY 4
1.4 STATEMENT OF RESEARCH QUESTION 5
1.5 RESEARCH HYPOTHESES 5
1.6 SIGNIFICANCE OF THE STUDY 5
1.7 SCOPE AND LIMITATION OF STUDY 6
1.8 ORGANIZATION OF STUDY 6
1.9 DEFINITION OF TERMS 7

CHAPTER TWO: REVIEW OF RELEVANT LITERATURE
2.1 THEORETICAL FRAMEWORK 9
2.2 CONCEPTUAL FRAMEWORK 10
2.3 TAX ADMINISTRATION IN NIGERIA 12
2.4 VALUE ADDED TAX IMPLEMENTATION IN NIGERIA 19
2.4.1 Evaluation of VAT as a Source of Revenue 20
2.5 A REVIEW OF THE TAXATION SYSTEM IN
NIGERIA HISTORICAL REVIEW 22
2.6 EMPIRICAL LITERATURE 33

CHAPTER THREE: RESEARCH METHODOLOGY
3.0 INTRODUCTION 40
3.1 RESEARCH DESIGN 40
3.2 SAMPLE PROCEDURE & DATA COLLECTION METHOD 41
3.4 DATA ANALYSES TECHNIQUES 42
3.5 MODEL SPECIFICATION 42

CHAPTER FOUR: RESULTS AND DISCUSSION
4.0 INTRODUCTION 44
4.1 DATA PRESENTATION 44
4.2 DATA ANALYSIS 47
4.3 TEST OF HYPOTHESIS 48

CHAPTER FIVE: SUMMARY CONCLUSIONS AND RECOMMENDATIONS
5.2 SUMMARY DISCUSSION OF FINDINGS 49
5.2 CONCLUSIONS 50
5.3 RECOMMENDATIONS 50
BIBLIOGRAPHY 52
APPENDICES 55

Reference code: C064
Reference code: C064
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79 Pages

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