ABSTRACT
This research work was aimed at study "the effect of value added tax in Nigeria, which has poses a lot of question in the inquisitive mind of some people as to "why" and "how" of the introduction.
The reason of this study is to replace the existing sales tax which was a nationally levied tax, and objective of (VAT) are.
To make room for more saving and subsequent investment since it minimizes consumption.
To limit Nigerian from total dependence or oil revenue
To maintain even tax incidence across various stage production
To promote exports and discourage import because product for export are given tax exemption while product on import are taxed heavily
It is equally believe that recommendation of this research work will be useful to ensure that VAT is painless to the poor masses, especially utilizing the fund from VAT on predetermined of diversifying the economy.
This research work was presented in five chapters. Chapter of the study; the problem arose ambiguity in the definition of vatable and exempted goods, the ideas of the author to replace the existing sales tax, to assess and find out the effect of value added tax in Nigeria industries, through result achieved based secondary data. All these is to bring more people to the tax nominal roll, and help to change government source of revenue, persuade local sourcing of raw material and help to check appropriate consumption of luxury goods.
ABSTRACT
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