THE VALUE ADDED TAX ITS EFFECTS ON THE ECONOMY
(A CASE STUDY OF ENUGU STATE)
ABSTRACT
Value Added Tax is a Tax on Consumable goods & services of individual and corporate bodies made payable to the government.
It serves as a source of income for satisfying collective wants and for regulating both economic and social policies and programmes.
In that recent past, other forms of taxes were existing in Nigeria with the exception of VAT and they could not generate enough revenue for execution of government projects and programmes. In view of this, the value Added Tax was introduced in Nigeria with effect from 1st Jan, 1994. The objectives of VAT, recently were not fully realized and this brought about problems under study.
The topic, value Added Tax and its effect on the Economy”. A case study of Enugu State x-rays the problematic areas in the topic under study. In order to succeed in the study, hypothesis were formulated and questionnaire were constructed and Chi-Square and simple percentages were employed to test the hypothesis.
It was observed that there had been a success in the administration and collection of value Added Tax in Enugu State, which led to increase tax revenue, but as economic improvement of Enugu Sate.
Having examined the above topic and identified the problems, recommendations were made on how this will be improve to ensure proper utilization of value Added Tax fund an increased value Added Tax revenue.
1.0 Introduction
1.1 Background of Study
1.2 Statement of Problem
1.3 Purpose of Study
1.4 Significance of Study
1.5 Hypothesis
1.6 Scope and Limitations of Study
1.7 Definition of Terms
1.8 References
2.0 Literature Review
2.1 Theoretical Framework
2.2 The Importance of Economy
2.3 Origin of Vat
2.3.1 The Important of Vat to the Economy
2.4 Vat Computation Accounting and Inspection in Nigeria
2.4.1 Accounting for Vat
2.4.2 Inspecting Vat Operations
2.5 The problems of Vat
2.6 The Administration of Vat
2.6.1 Registration of Value
2.6.2 Supplies
2.6.3 Determination of Value
2.6.4 Taxable Goods and Services
2.6.5 Goods Exempted from Vat
2.6.6 Taxable Services
2.6.7 Taxable Services and the Rate of Vat
2.6.8 Remittance of Vat
2.7 Offences and Penalties
2.8 The Objectives of Vat
2.9 References
3.0 Research Design and Methodology
3.1 Research Design
3.2 Area of Study
3.3 Sample Population
3.4 Nature of Data Analysis
3.5 Sources of Data
3.5.1 Primary Sources of Data
3.5.2 Secondary Sources of Data
3.6 Method of Gathering Data
3.7 Questionnaire Design
4.0 Data Presentation and Analysis
4.1 Administration and Collection of Questionnaire
4.2 Analysis and Test of Questionnaire Using Chi-Square; Testing of Hypothesis (H3)
CHAPTER FIVE
5.0 Summary, Recommendation and Conclusion
5.1 Summary of Findings
5.2 Recommendation
5.3 Conclusion
PROPOSAL
The value added tax and its effect on the economy (A case study of Enugu State). Vale added tax is a tax on consumable goods and service of individuals and corporate bodies made payable to the government. Ti also serve as a source of income for satisfying collective wants and for regulating both economic and social policies and programmes.
Chapter 1 State the Introduction of Vat as a multi-stage tax imposed on the value added to goods and services as they proceed through various stages of production and distribution and to services as they are rendered which is eventually borne by the final consumer but collected as each stage of the production and contribution chain. The introduction of this kind of tax (VAT) was also introduced when the Nigeria economy is almost at the point of collapse in another avenue of seeking for solution to the country’s economic problem.
Chapter II Literature Review. Its aimed is to provide a conceptual framework as well as what has been done on the study of the value Added Tax and its effects on the development of Nigeria.
Chapter III Research Design and Methodology. To identifying the extent of success of administration in the collection of value Added Tax, whether VAT has favourably replaced the scale Tax by virtues of the income realized and whether this has eventually contributed reasonable to the economic improvement objectives of the new tax system in Enugu State.
Chapter IV Data Presentation and Analysis. The following information is presented based on the data collected from the questionnaires and oral interview conducted by the researcher. The researcher used the Tabular form to analysis the answers from the respondents which are shown in percentages.
Chapter V Summary, Recommendation and Conclusion: To summarized all the finding on other chapter and the recommendation is to recommend the basic objective of the value Added Tax which was introduced in Nigeria in 1994 as to increase the revenue generated from the non-oil sector to reduce over dependence in oil revenue for our national economic growth.
CHAPTER ONE
Value Added Tax (VAT) is a consumption tax on economic operations both on tangible goods (Raw materials, semi-finished, finished products and on intangible assets such as franchise, rights, patens, goodwill) etc. Federal Inland Revenue Services circular No. 9305 of November 1993.
Taxation in itself is an old economic concept, older than the advent of the British colonial administration in Nigeria but for the purpose of this study, I will base my write ups on indirect tax specifically value Added tax (VAT).
Traditionally, taxes are based on income of individuals or profit of an economic unit. Other bases of tax are wealth, capital, property and consumption.
Categorically taxes are classified into: direct and indirect tax. Indirect tax, which embodies VAT, is leveled on the exercise of purchasing power. Therefore if a consumer who has the power refuses to exercise it, he/she avoided paying tax. The imposition of a consumption tax (VAT) therefore defines the tax as a compulsory transfer of corporate or personal purchasing power to the government whenever that power is exercised (Naiyeju – 1996).
1.1 BACKGOUND OF STUDY
The monetary policy existing in Nigeria before the 1994 budget was not able to generate the much-needed revenue to meet up with the government expenditure requirements. A at 1991, the 75% of the total generate revenue was from petroleum which accounted for about N54 billion out of the N72 billion total. There is therefore the need to reform the Nigeria tax system, which is the major non-oil revenue sector. This is why the International Monetary Fund (IMF) AND THE world Bank, two agencies of the United nations Organization which are closely identified with the establishment and continued operation and monitoring of SAP suggested to the Federal Government, the introduction of Value Added Tax (VAT) as a replacement of sales tax. This is in anticipation of higher revenue generation from the new tax system.
The Federal Government’s budget of 1994 expected a total of N47.1 billion as revenue from non-oil sources, which is part of the N110.20 billion total budgeted expenditure. To achieve the amount of revenue realization from non-oil sources, the government, therefore, introduced the Value Added Tax (VAT).
In the 1994 budget radio broadcast to the nation by major general Sani Abacha had stated:
“Tax policy in 1994 would aim at encouraging genuine entrepreneurs while improving the enforcement of existing tax laws and the machinery for tax collection. However, a new tax on consumption known as the Value Added Tax is to come into effect this year”.
This official budget statement introduced the new form of tax known as the Value Added Tax (VAT) into the Nigerian tax policy and backed up by Decree 102 of 1st September, 1993 and the decree this stated:
“There is hereby imposed and charged a tax to be known as the Value Added Tax (in this decree referred to as the tax) which shall be administered in accordance with the provisions of this decree”.
These extracts from the 1993 decree and the budget statement of 1994 has therefore given mandate to the Federal Inland Revenue Services to administer and collect tax on consumption of this kind of tax (VAT) at this point in time when the Nigeria economy is almost at the point of collapse in another avenue of seeking for solution to the country’s economic problem.
Tax is forms of compulsory levy on the income of the citizens, according to income, value of purchase and so on. This levy is collected by the government to be applied to public purposes. According to Ola C.S “The main objectives of taxation is primarily to raise revenue to finance government expenditure and secondary to influence in the economy as a whole.
Taxation is a key factor for promoting the governments overall economy and social objectives. And taxation is used to achieve economic growth which refers to an increase in the money, goods and other resources of the community, society and household. Taxation fights depression, inflation and deflation, achieves equitable distribution of income and wealth, allocates resources in a socially desirable manner, discourages the consumption of some certain goods, encourages and protects new industries within the country and ensures that the balance of payment of the country is in a healthy position.
While economy on the other hand, refers to the control and management of the money, goods and other resources of a community, society or household. The imposition of the VAT by the Federal Government is an indication of the government’s desire for Vat to contribute in the economic development of the states in particular and the nation at large. It is therefore, intended that the 80% of the VAT revenue will go to the states while 20% will cover the cost administration and collection by the federal government. “Sates are to benefit from the yield of this new tax up to 80% of the total collection”
This was a budget statement by late General Sani Abacha during the radio broadcast of the 1994 Budget.
Question had arisen as to whether VAT is a good replacement of the sale Tax? All analysis on this has therefore stopped at merely alleging that the value Added tax administration and collection has not achieved the economic improvement objective for which the Federal government has set it up especially with reference to Enugu State. This problem should therefore not be allowed to persist further as we shall have solved it at the end of this research work. An empirical analysis is therefore utmost needed to b carried out to examine all the facts of this problem.
1.2 STATEMENT OF PROBLEM
There are major sources of revenue in Nigeria e.g Oil, which accounts for about 80% of the total revenue and taxation. In recent times, revenue accruing from the oil sector has been on decline especially with the influence of international polities, which has been effecting the price of oil. It therefore became necessary to look for other ways of generating the much-needed revenue for the nations, hence the introduction of the Value Added Tax (VAT).
The Value Added Tax which is tax on consumable goods based on the general consumption behaviour of the people. This is because it cuts across all consumable goods and services and the expected yield will boast the state government’s revenue. The income realization will depend on the acceptability of the new tax system by the people and it’s proper administration and collection. The income realized from VAT will now determine the face of our economy along with the much that will be generated by oil sector and other non-oil sources.
The economy is at the point of collapse and needs all possible measure to help revamp it. The value Added Tax as an alternative to the sales Tax is expected to contribute more positively towards our revival. The implementation of VAT so far, has it been able to show any sign of a better replacement of sales Tax when the economic growth in concerned?
That is why this particular study will throw more light on:
1.2.1 Examining the administration and collection of the Value Added Tax in Enugu State with particular reference to selected households / organization.
1.2.2 Comparing the sales Tax income of the first quarter of 1993 and the Value Added Tax income for the first quarter of 1994-97 in Enugu State.
1.3 PURPOSE OF STUDY
This study is aimed at determining:
1.3.1 Whether the administration and collection of the Value Added Tax is in compliance with the set plan and method.
1.3.2 Whether by virtue of the income realized, the Value Added Tax had favourably replaced the sales Tax.
1.4 SIGNIFICANCE OF STUDY
There had been a continuous debate on the possibility of attaining success in the administration and collection of the Value Added tax in Nigeria. However, no empirical study has been carried out to discover how far the Federal Inland Revenue had gone in ensuring the success in VAT in Nigeria.
Secondly, this study will bring out the difference in the income realized from the sales Tax and the Value Added Tax within the first quarter of 1993 and the first quarter of the year Vat was being introduced 91994) – respectively as a yardstick for determining the annual income realized from VAT.
1.5 HYPOTHESIS
The following hypothesis will be tested:
Null Ho: The administration and collection of the Value Added Tax is in compliance with the established plan and method.
H1: The administration and collection of the Value Added Tax is not in compliance with the established plan and method.
H0: The income realized from Value Added tax is higher than that of the sales Tax for the 1st quarter of 1007 and 1993 respectively.
Y2 = y1
H1: The income realized from the Value Added Tax is less than that of the sales Tax for the 1st quarters of 1997 and 1993 respectively.
Y2 ¹ y1
H0: The income from the Value Added Tax has contributed more favourably to the economic growth of the nation than that of the sales Tax when those variable are considered, namely:
- Amount realized from both tax system (x1)
- Good road network / maintenance from allocations (x2)
- Regular payments of salary of workers (x3)
- Moderate prices of goods and services (x4)
- Proper funding of education (x5)
- Regular and pure water supply (x6)
H1: income from Value Added Tax has not contributed more favourably to the economic growth of nation than that of the sales tax when the variables are considered, namely:
- Amount realized from both tax system (x1)
- Good road network / maintenance from allocations (x2)
- Regular payments of salary of workers (x3)
- Moderate prices of goods and services (x4)
- Proper funding of education (x5)
- Regular and pure water supply (x6) Y2 (x1, x2, x3, x4, x5, x6)
1.6 SCOPE AND LIMITATIONS OF STUDY
My intent to conduct this study within the units of a policy that came into operation on 1st January to June 1994 and January to June 1995 to be compared to the same period in 1993. The first six months of 1997 because the sales tax was still in operation up till the end of 1993. The first six months of 1997 was also chosen because the new tax policy had lasted only four years before this study was commenced.
The second handicap was the non-availability of data. The policy introduced lasted four years and not much had been published concerning the Value Added Tax in Nigeria. The only available data were those obtainable from the Federal Inland Revenue Services. There were serious restrictions as some documents were captioned “Official Secrets”.
In my pilot survey, I discovered that a longer period of let’s ay three year time there would have served better in providing the needed information for this study. When there will be a peaceful environment in the country.
1.7 DEFINITIONS OF TERMS
Some of the terms as sued in the study are defined below:
SAP: Structural Adjustment Programme. An economic reconstruction programme introduced by General Babangida regime to be monitored by the World Bank and the International Monetary Fund (IMF) as an alternative to IMF loan.
Decree: A bill passed into law by the Federal Military Government.
Consumption: This refers tot eh goods and services paid for by a consumer.
VAT: Value Added Tax
VAT able Goods: Goods and services that qualify for the Value Added Tax.
Ijewere Emmanuel Ed. “Modified Value Added Tax” The Modern Accountant
April / June 1993
Federal Republic of Nigeria Official Gazette, Decree No. 102, A 1207 Federal
Government, Press, Lagos Nigeria 1st September, 1993
Daily Times: The 1994 Budget Broadcast January 12, 1994
Ola, C.S Nigeria Income Tax Law and Practice Macmillan Publishers, 1995
Obi Joseph Ed. Policy and Administration of Value Added tax in Nigeria
Unpublished
Onyeji I.I. Ed. Administration and Policy of Value Added Tax in Nigeria.
Unpublished.
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(A CASE STUDY OF ENUGU STATE)
ABSTRACT
Value Added Tax is a Tax on Consumable goods & services of individual and corporate bodies made payable to the government.
It serves as a source of income for satisfying collective wants and for regulating both economic and social policies and programmes.
In that recent past, other forms of taxes were existing in Nigeria with the exception of VAT and they could not generate enough revenue for execution of government projects and programmes. In view of this, the value Added Tax was introduced in Nigeria with effect from 1st Jan, 1994. The objectives of VAT, recently were not fully realized and this brought about problems under study.
The topic, value Added Tax and its effect on the Economy”. A case study of Enugu State x-rays the problematic areas in the topic under study. In order to succeed in the study, hypothesis were formulated and questionnaire were constructed and Chi-Square and simple percentages were employed to test the hypothesis.
It was observed that there had been a success in the administration and collection of value Added Tax in Enugu State, which led to increase tax revenue, but as economic improvement of Enugu Sate.
Having examined the above topic and identified the problems, recommendations were made on how this will be improve to ensure proper utilization of value Added Tax fund an increased value Added Tax revenue.
CHAPTER ONE
1.0 Introduction
1.1 Background of Study
1.2 Statement of Problem
1.3 Purpose of Study
1.4 Significance of Study
1.5 Hypothesis
1.6 Scope and Limitations of Study
1.7 Definition of Terms
1.8 References
CHAPTER TWO
2.0 Literature Review
2.1 Theoretical Framework
2.2 The Importance of Economy
2.3 Origin of Vat
2.3.1 The Important of Vat to the Economy
2.4 Vat Computation Accounting and Inspection in Nigeria
2.4.1 Accounting for Vat
2.4.2 Inspecting Vat Operations
2.5 The problems of Vat
2.6 The Administration of Vat
2.6.1 Registration of Value
2.6.2 Supplies
2.6.3 Determination of Value
2.6.4 Taxable Goods and Services
2.6.5 Goods Exempted from Vat
2.6.6 Taxable Services
2.6.7 Taxable Services and the Rate of Vat
2.6.8 Remittance of Vat
2.7 Offences and Penalties
2.8 The Objectives of Vat
2.9 References
CHAPTER THREE
3.0 Research Design and Methodology
3.1 Research Design
3.2 Area of Study
3.3 Sample Population
3.4 Nature of Data Analysis
3.5 Sources of Data
3.5.1 Primary Sources of Data
3.5.2 Secondary Sources of Data
3.6 Method of Gathering Data
3.7 Questionnaire Design
CHAPTER FOUR
4.0 Data Presentation and Analysis
4.1 Administration and Collection of Questionnaire
4.2 Analysis and Test of Questionnaire Using Chi-Square; Testing of Hypothesis (H3)
CHAPTER FIVE
5.0 Summary, Recommendation and Conclusion
5.1 Summary of Findings
5.2 Recommendation
5.3 Conclusion
PROPOSAL
The value added tax and its effect on the economy (A case study of Enugu State). Vale added tax is a tax on consumable goods and service of individuals and corporate bodies made payable to the government. Ti also serve as a source of income for satisfying collective wants and for regulating both economic and social policies and programmes.
Chapter 1 State the Introduction of Vat as a multi-stage tax imposed on the value added to goods and services as they proceed through various stages of production and distribution and to services as they are rendered which is eventually borne by the final consumer but collected as each stage of the production and contribution chain. The introduction of this kind of tax (VAT) was also introduced when the Nigeria economy is almost at the point of collapse in another avenue of seeking for solution to the country’s economic problem.
Chapter II Literature Review. Its aimed is to provide a conceptual framework as well as what has been done on the study of the value Added Tax and its effects on the development of Nigeria.
Chapter III Research Design and Methodology. To identifying the extent of success of administration in the collection of value Added Tax, whether VAT has favourably replaced the scale Tax by virtues of the income realized and whether this has eventually contributed reasonable to the economic improvement objectives of the new tax system in Enugu State.
Chapter IV Data Presentation and Analysis. The following information is presented based on the data collected from the questionnaires and oral interview conducted by the researcher. The researcher used the Tabular form to analysis the answers from the respondents which are shown in percentages.
Chapter V Summary, Recommendation and Conclusion: To summarized all the finding on other chapter and the recommendation is to recommend the basic objective of the value Added Tax which was introduced in Nigeria in 1994 as to increase the revenue generated from the non-oil sector to reduce over dependence in oil revenue for our national economic growth.
CHAPTER ONE
- INTRODUCTION
Value Added Tax (VAT) is a consumption tax on economic operations both on tangible goods (Raw materials, semi-finished, finished products and on intangible assets such as franchise, rights, patens, goodwill) etc. Federal Inland Revenue Services circular No. 9305 of November 1993.
Taxation in itself is an old economic concept, older than the advent of the British colonial administration in Nigeria but for the purpose of this study, I will base my write ups on indirect tax specifically value Added tax (VAT).
Traditionally, taxes are based on income of individuals or profit of an economic unit. Other bases of tax are wealth, capital, property and consumption.
Categorically taxes are classified into: direct and indirect tax. Indirect tax, which embodies VAT, is leveled on the exercise of purchasing power. Therefore if a consumer who has the power refuses to exercise it, he/she avoided paying tax. The imposition of a consumption tax (VAT) therefore defines the tax as a compulsory transfer of corporate or personal purchasing power to the government whenever that power is exercised (Naiyeju – 1996).
1.1 BACKGOUND OF STUDY
The monetary policy existing in Nigeria before the 1994 budget was not able to generate the much-needed revenue to meet up with the government expenditure requirements. A at 1991, the 75% of the total generate revenue was from petroleum which accounted for about N54 billion out of the N72 billion total. There is therefore the need to reform the Nigeria tax system, which is the major non-oil revenue sector. This is why the International Monetary Fund (IMF) AND THE world Bank, two agencies of the United nations Organization which are closely identified with the establishment and continued operation and monitoring of SAP suggested to the Federal Government, the introduction of Value Added Tax (VAT) as a replacement of sales tax. This is in anticipation of higher revenue generation from the new tax system.
The Federal Government’s budget of 1994 expected a total of N47.1 billion as revenue from non-oil sources, which is part of the N110.20 billion total budgeted expenditure. To achieve the amount of revenue realization from non-oil sources, the government, therefore, introduced the Value Added Tax (VAT).
In the 1994 budget radio broadcast to the nation by major general Sani Abacha had stated:
“Tax policy in 1994 would aim at encouraging genuine entrepreneurs while improving the enforcement of existing tax laws and the machinery for tax collection. However, a new tax on consumption known as the Value Added Tax is to come into effect this year”.
This official budget statement introduced the new form of tax known as the Value Added Tax (VAT) into the Nigerian tax policy and backed up by Decree 102 of 1st September, 1993 and the decree this stated:
“There is hereby imposed and charged a tax to be known as the Value Added Tax (in this decree referred to as the tax) which shall be administered in accordance with the provisions of this decree”.
These extracts from the 1993 decree and the budget statement of 1994 has therefore given mandate to the Federal Inland Revenue Services to administer and collect tax on consumption of this kind of tax (VAT) at this point in time when the Nigeria economy is almost at the point of collapse in another avenue of seeking for solution to the country’s economic problem.
Tax is forms of compulsory levy on the income of the citizens, according to income, value of purchase and so on. This levy is collected by the government to be applied to public purposes. According to Ola C.S “The main objectives of taxation is primarily to raise revenue to finance government expenditure and secondary to influence in the economy as a whole.
Taxation is a key factor for promoting the governments overall economy and social objectives. And taxation is used to achieve economic growth which refers to an increase in the money, goods and other resources of the community, society and household. Taxation fights depression, inflation and deflation, achieves equitable distribution of income and wealth, allocates resources in a socially desirable manner, discourages the consumption of some certain goods, encourages and protects new industries within the country and ensures that the balance of payment of the country is in a healthy position.
While economy on the other hand, refers to the control and management of the money, goods and other resources of a community, society or household. The imposition of the VAT by the Federal Government is an indication of the government’s desire for Vat to contribute in the economic development of the states in particular and the nation at large. It is therefore, intended that the 80% of the VAT revenue will go to the states while 20% will cover the cost administration and collection by the federal government. “Sates are to benefit from the yield of this new tax up to 80% of the total collection”
This was a budget statement by late General Sani Abacha during the radio broadcast of the 1994 Budget.
Question had arisen as to whether VAT is a good replacement of the sale Tax? All analysis on this has therefore stopped at merely alleging that the value Added tax administration and collection has not achieved the economic improvement objective for which the Federal government has set it up especially with reference to Enugu State. This problem should therefore not be allowed to persist further as we shall have solved it at the end of this research work. An empirical analysis is therefore utmost needed to b carried out to examine all the facts of this problem.
1.2 STATEMENT OF PROBLEM
There are major sources of revenue in Nigeria e.g Oil, which accounts for about 80% of the total revenue and taxation. In recent times, revenue accruing from the oil sector has been on decline especially with the influence of international polities, which has been effecting the price of oil. It therefore became necessary to look for other ways of generating the much-needed revenue for the nations, hence the introduction of the Value Added Tax (VAT).
The Value Added Tax which is tax on consumable goods based on the general consumption behaviour of the people. This is because it cuts across all consumable goods and services and the expected yield will boast the state government’s revenue. The income realization will depend on the acceptability of the new tax system by the people and it’s proper administration and collection. The income realized from VAT will now determine the face of our economy along with the much that will be generated by oil sector and other non-oil sources.
The economy is at the point of collapse and needs all possible measure to help revamp it. The value Added Tax as an alternative to the sales Tax is expected to contribute more positively towards our revival. The implementation of VAT so far, has it been able to show any sign of a better replacement of sales Tax when the economic growth in concerned?
That is why this particular study will throw more light on:
1.2.1 Examining the administration and collection of the Value Added Tax in Enugu State with particular reference to selected households / organization.
1.2.2 Comparing the sales Tax income of the first quarter of 1993 and the Value Added Tax income for the first quarter of 1994-97 in Enugu State.
- Developing an explanatory model for the effects of Value Added Tax I\on the economic with reference to that of Enugu State.
1.3 PURPOSE OF STUDY
This study is aimed at determining:
1.3.1 Whether the administration and collection of the Value Added Tax is in compliance with the set plan and method.
1.3.2 Whether by virtue of the income realized, the Value Added Tax had favourably replaced the sales Tax.
- Whether this new tax has contributed reasonably tot eh improvement fo the economy, especially that of the Enugu State.
1.4 SIGNIFICANCE OF STUDY
There had been a continuous debate on the possibility of attaining success in the administration and collection of the Value Added tax in Nigeria. However, no empirical study has been carried out to discover how far the Federal Inland Revenue had gone in ensuring the success in VAT in Nigeria.
Secondly, this study will bring out the difference in the income realized from the sales Tax and the Value Added Tax within the first quarter of 1993 and the first quarter of the year Vat was being introduced 91994) – respectively as a yardstick for determining the annual income realized from VAT.
1.5 HYPOTHESIS
The following hypothesis will be tested:
Null Ho: The administration and collection of the Value Added Tax is in compliance with the established plan and method.
H1: The administration and collection of the Value Added Tax is not in compliance with the established plan and method.
H0: The income realized from Value Added tax is higher than that of the sales Tax for the 1st quarter of 1007 and 1993 respectively.
Y2 = y1
H1: The income realized from the Value Added Tax is less than that of the sales Tax for the 1st quarters of 1997 and 1993 respectively.
Y2 ¹ y1
H0: The income from the Value Added Tax has contributed more favourably to the economic growth of the nation than that of the sales Tax when those variable are considered, namely:
- Amount realized from both tax system (x1)
- Good road network / maintenance from allocations (x2)
- Regular payments of salary of workers (x3)
- Moderate prices of goods and services (x4)
- Proper funding of education (x5)
- Regular and pure water supply (x6)
H1: income from Value Added Tax has not contributed more favourably to the economic growth of nation than that of the sales tax when the variables are considered, namely:
- Amount realized from both tax system (x1)
- Good road network / maintenance from allocations (x2)
- Regular payments of salary of workers (x3)
- Moderate prices of goods and services (x4)
- Proper funding of education (x5)
- Regular and pure water supply (x6) Y2 (x1, x2, x3, x4, x5, x6)
1.6 SCOPE AND LIMITATIONS OF STUDY
My intent to conduct this study within the units of a policy that came into operation on 1st January to June 1994 and January to June 1995 to be compared to the same period in 1993. The first six months of 1997 because the sales tax was still in operation up till the end of 1993. The first six months of 1997 was also chosen because the new tax policy had lasted only four years before this study was commenced.
The second handicap was the non-availability of data. The policy introduced lasted four years and not much had been published concerning the Value Added Tax in Nigeria. The only available data were those obtainable from the Federal Inland Revenue Services. There were serious restrictions as some documents were captioned “Official Secrets”.
In my pilot survey, I discovered that a longer period of let’s ay three year time there would have served better in providing the needed information for this study. When there will be a peaceful environment in the country.
1.7 DEFINITIONS OF TERMS
Some of the terms as sued in the study are defined below:
SAP: Structural Adjustment Programme. An economic reconstruction programme introduced by General Babangida regime to be monitored by the World Bank and the International Monetary Fund (IMF) as an alternative to IMF loan.
Decree: A bill passed into law by the Federal Military Government.
Consumption: This refers tot eh goods and services paid for by a consumer.
VAT: Value Added Tax
VAT able Goods: Goods and services that qualify for the Value Added Tax.
- REFERENCES
Ijewere Emmanuel Ed. “Modified Value Added Tax” The Modern Accountant
April / June 1993
Federal Republic of Nigeria Official Gazette, Decree No. 102, A 1207 Federal
Government, Press, Lagos Nigeria 1st September, 1993
Daily Times: The 1994 Budget Broadcast January 12, 1994
Ola, C.S Nigeria Income Tax Law and Practice Macmillan Publishers, 1995
Obi Joseph Ed. Policy and Administration of Value Added tax in Nigeria
Unpublished
Onyeji I.I. Ed. Administration and Policy of Value Added Tax in Nigeria.
Unpublished.
Download our android mobile app for more materials
ORDER NOW
COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
MAKE YOUR PAYMENT INTO ANY OF THE FOLLOWING BANKS:
GTBANK
Account Name : Host Link Global Services Ltd
ACCOUNT NUMBER: 0138924237
Account Name : Host Link Global Services Ltd
ACCOUNT NUMBER: 0138924237
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
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