Original Research Article | OPEN ACCESS
Value-Added Tax, Government Incomes and Consumption Patterns

Eseoghene Otemu

Department of Accountancy, School of Business Studies, Delta State Polytechnic, Otefe-Oghara, Delta State, Nigeria;

For correspondence:-     Email: otemuese@gmail.com

Received: June 4, 2020        Accepted: August 2, 2020        Published: September 30, 2020

Citation: Otemu E. Value-Added Tax, Government Incomes and Consumption Patterns. Account Tax Rev 2020; 4(3):66-76 doi:

© 2020 The authors.
This is an Open Access article that uses a funding model which does not charge readers or their institutions for access and distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0) and the Budapest Open Access Initiative (http://www.budapestopenaccessinitiative.org/read), which permit unrestricted use, distribution, and reproduction in any medium, provided the original work is properly credited..


In this paper, we empirically assessed whether value-added tax contributes to government incomes and moderates consumption patterns in Nigeria.  Quarterly time-series data of value-added tax, government incomes and consumption patterns were obtained from the Central Bank of Nigeria statistical bulletin during the period 2000-2018. Ordinary least square (OLS) estimation technique was adopted in the analysis of data and findings revealed that while value-added tax contributes significantly to government revenue, largely; value-added tax moderates consumption patterns in Nigeria.  In view of the findings, we recommended among others that the government via its regulatory agencies should inject some fairness in the tax system in the area of consumption tax so that the burden of income tax would lessen on those with a low-income level. Moreover, the regulatory agency charged with the sole tasks of collecting value-added tax should further be strengthened to enforce compliance by taxpayers.

Keywords: Value added tax; Government income; Consumption patterns; Finance Act 2019

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