+234 813 0686 500
+234 809 3423 853
info@grossarchive.com
+234 813 0686 500
info@grossarchive.com

Project Topic: THE EFFECT OF VALUE ADDED TAX ON THE NIGERIA TAX SYSTEM: A CASE STUDY OF REVENUE MOBILIZATION AND FISCAL ALLOCATION COMMISSION, ABUJA

  • Type: Project
  • Department: Accounting
  • Project ID: ACC0866
  • Price: ₦3,000 ($20)
  • Chapters: 5 Chapters
  • Pages: 54 Pages
  • Format: Microsoft Word
  • Views: 728

For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853

THE EFFECT OF VALUE ADDED TAX ON THE NIGERIA TAX SYSTEM: A CASE STUDY OF REVENUE MOBILIZATION AND FISCAL ALLOCATION COMMISSION, ABUJA

CHAPTER ONE

INTRODUCTION

1.1Background of the study

Taxation is the central part of modern economic development. Their importance is not only due to the fact that it is by far the most important of all incomes, but also to the severity of the problems caused by the current high tax burden (Greene, 2011). The main objective of taxation is to generate revenue. In a welfare state, a large amount of tax is required to meet its obligations. According to Musgrave (2008), taxation is used as a means to achieve certain social goals, ie as a means of redistributing wealth and reducing inequalities. Taxation in a modern government is therefore not only necessary to generate the revenues needed to cope with the ever-increasing expenditure on administration and social services, but also to reduce income and wealth disparities. Taxation is also needed to withdraw money that would otherwise go into consumption and increase inflation.

In most countries around the world, the goal is to achieve rapid overall development through optimal tax collection and a broader income base. In order to achieve this goal, many countries of the world, especially developing countries, have selectively introduced new forms of taxation to boost their income opportunities in order to improve socio-economic conditions. their citizens and a rapid economic development. Countries (Iorun, 2012). One of these forms of taxation is value added tax (VAT), this impressive VAT performance in almost every country in which it was introduced. According to Ajakaiye (2000), he clearly influenced the decision to introduce VAT in Nigeria on 1 September 1993, although the actual transaction did not begin until 1 January 1994. VAT is a relatively simple excise tax to manage and difficult to avoid. adopted by many countries of the world (FIRS circular, 1999). To date, the evidence supports the view that VAT revenue is already a significant source of revenue in Nigeria and that VAT revenue is a fairly accurate measure of economic growth. A purchase that increases performance with the economy.

VAT is charged on the consumption of goods and services. This includes goods and services imported into the country. It is calculated throughout Nigeria at a fixed rate of five (5%). The 5% Exit Tax is calculated for all goods and services offered by a registered person and the tax burden is compensated by the end user (Ajakaiye, 2000). The broadening of the VAT base is leading to a sharp increase in federal revenue, indicating that the consumption patterns of the majority of Nigerians are increasing. The increase in consumption habits creates a market and has a positive effect on the economic activities of the country (Unegbu and Irefin, 2011). The study will examine the impact of VAT on Nigeria's tax system.

1.2 Problem statement

Nigeria intends to increase the percentage of value added tax on goods and services due to its importance for income, economic growth and development by turning away from direct taxation a consumption based indirect taxation system in line with best practices worldwide, to achieve a stable flow of oil revenues and reduce corporate and income taxes. However, citizens have different ideas (including: too much burden on the end user, inflation and higher prices for fuel pumps). This view of the majority of Nigerian citizens made research on the impact of VAT on the Nigerian tax system relevant. It is therefore necessary to understand, on the basis of empirical facts, the impact of VAT on the Nigerian tax system.

1.3 Purpose of the study

The main objective of this study is to ascertain whether Value Added Tax has impact on tax system of nigeria. Specific objectives include:

  • To ascertain the influence of Value Added Tax on tax collection.

  • To ascertain the influence of Value Added Tax on tax evasion.

  • To ascertain the influence of Value Added Tax on tax avoidance.

1.4 Significance of the study

This study will be of great importance to the government by highlighting the effect of VAT on the tax system of nigeria. This study will also help in shaping and providing a better understanding to citizenries on how VAT is charged and its contribution to the economy. More so, it will help other researchers to carry out further research on this subject area.

    1. Study hypothesis

The study hypothesis is:

Ho1. Government tax collecction of Nigeria is not significantly influenced by Value Added Tax.

Ho2. Government tax evasion of Nigeria is not significantly influenced by Value Added Tax.

Ho3. Government tax aviodance of Nigeria is not significantly influenced by Value Added Tax.

    1. Scope and Limitations of the Study

The scope of this study is to examine the impact of value added tax on Tax system of Nigeria using of revenue mobilization and fiscal allocation commission Abuja as case study. Limitation faced by the research was limited time and financial constraint

    1. Definition of Basic terminologies

      1. Concepts of Value added Tax

value added tax as an indirect form of taxation based on the general consumption behavior of the people. It is a tax on spending expected to be borne by the final consumer of goods and services. It covers manufactured goods, imports as well as professional and banking services.

        1. The consumption Value Added Tax

Under the consumption VAT, capital purchases are treated the same way as input. It has some advantages, one of which is that it is easier to compute, as the firm does not have to separate expenditure on other items of purchases in determining the VAT base. The main disadvantage of this type of VAT is that it creates refined problems where very heavy and expensive machinery are involved.

        1. The income Value Added Tax

With this type of VAT, the tax paid on purchases of capital inputs is amortized (that is credited against the firm’s VAT liability) over the expected lives of such capital inputs.

THE EFFECT OF VALUE ADDED TAX ON THE NIGERIA TAX SYSTEM: A CASE STUDY OF REVENUE MOBILIZATION AND FISCAL ALLOCATION COMMISSION, ABUJA
For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853

Share This
  • Type: Project
  • Department: Accounting
  • Project ID: ACC0866
  • Price: ₦3,000 ($20)
  • Chapters: 5 Chapters
  • Pages: 54 Pages
  • Format: Microsoft Word
  • Views: 728
Payment Instruction
Bank payment for Nigerians, Make a payment of ₦ 3,000 to

Bank GTBANK
gtbank
Account Name Obiaks Business Venture
Account Number 0211074565

Bitcoin: Make a payment of 0.0003 to

Bitcoin(Btc)

btc wallet
Copy to clipboard Copy text

500
Leave a comment...

    Details

    Type Project
    Department Accounting
    Project ID ACC0866
    Price ₦3,000 ($20)
    Chapters 5 Chapters
    No of Pages 54 Pages
    Format Microsoft Word

    Related Works

    CHAPTER ONE INTRODUCTION 1.1Background of the study Taxation is the central part of modern economic development. Their importance is not only due to the fact that it is by far the most important of all incomes, but... Continue Reading
    CHAPTER ONE 1.0     INTRODUCTION 1.1.     OVERVIEW OF THE STUDY Revenue Allocationis a dynamic process which has been changing with the historical and political condition of the country. The issue of revenue sharing came to sharp focus with granting of the internal autonomy to the regions- North, West and East under the Richardson... Continue Reading
    ABSTRACT Generation of fund by the government to finance its expenditure comes from many ways, one of which is through taxation. One aspect of such taxation is the value added tax ( VAT). Since the introduction of this tax, certain anomalies have been observed within the economic circle. This project however, seeks to address the issue of... Continue Reading
    ABSTRACT Generation of fund by the government to finance its expenditure comes from many ways, one of which is through taxation. One aspect of such taxation is the value added tax ( VAT). Since the introduction of this tax, certain anomalies have been observed within the economic circle. This project however, seeks to address the issue of... Continue Reading
    Abstract This study is carried out with the aim of evaluating Nigeria tax system with special emphasis on value added tax – study of Federal Board of Inland Revenue (FIBR). It began with the history and development of Nigeria tax system right from its introduction between 1804 and 1810 and went through the fields of various tax It main purpose... Continue Reading
    THE POLITICS OF REVENUE ALLOCATION IN NIGERIA: NIGER DELTA EXPERIENCE ABSTRACT The Niger Delta region of Nigeria has in recent years been a hotbed of conflict. The region has been embroiled in turmoil over the struggle for equitable resource allocation. Federal systems by their nature are complex administrative designs because they involve... Continue Reading
    Tax administration in Nigeria lacks coherent policy and this made the economy to remain in a deep structure. The main purpose of this study was to investigate the critical tax administration challenges before Nigeria and pinpoint measures required by authorities and practitioners to meet them in order to achieve these, two hypotheses were... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY To highlight some significant event and developments in response to a review of Nigeria experience as a nation state, it is intellectual to present a brief survey of the part to understand the distinct phases... Continue Reading
    ABSTRACT A study of tax collection and revenue mobilization. This study is aimed at the problems surrounding tax collection and revenue mobilization. The objective of the study is determine the level of corruption or sharp practices on the part of tax collectors and revenue generators in local government area and also to know the extend to which... Continue Reading
    ABSTRACT A study of tax collection and revenue mobilization. This study is aimed at the problems surrounding tax collection and revenue mobilization. The objective of the study is determine the level of corruption or sharp practices on the part of tax collectors and revenue generators in local government area and also to know the extend to which... Continue Reading
    Call Us
    Get this work
    whatsappWhatsApp Us