For correspondence:-
Received: June 4, 2020 Accepted: August 2, 2020 Published: September 30, 2020
Citation: Value-Added Tax, Government Incomes and Consumption Patterns. Account Tax Rev 2005; 4(3):66-76 doi:
© 2005 The authors.
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Abstract
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.
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