VALUE ADDED TAX: AN IMPORTANT SOURCE OF REVENUE TO THE GOVERNMENT IN NIGERIA
ABSTRACT
The research work is carried out specifically to appreciate value Added Tax as an important source of revenue to the government in Nigeria and its importance to the development of business organisation. The research work analyse the purpose, problems, significance and also the questions relating to the importance of value Added Tax as a source of revenue to the government in Nigeria. In view of this, the research work is discussed under five chapters. Chapter one, focuses on the general introduction of the topic under view, stating the questions and hypothesis. Chapter two deals with the review of the related literature, philosophy and the history of VAT in Nigeria, along with some specific government responsibilities, and also general appraisal of VAT administration in Nigeria, scope, nature and operational character. Chapter three is about research methodology, to see the important of Value Added Tax as a source of revenue to the government in Nigeria, the research design is used, data collection instrument and sampling techniques. Chapter four deals with classification of responses, the information gathered from questionnaires and how such information are tested using hypothesis. Chapter five focused on the summary of findings, conclusion, scope and limitations and finally recommendations.
CHAPTER ONE
1.0 Introduction
Taxation is an important factor in Economic planning and also an agent for social change. It is perhaps the last to understand and most unappreciated instrument among other government policies by the citizens, yet they expect government to provide some services. This must probably owing to the fact that most people, particularly in developing countries like Nigeria, have very little knowledge of how the machineries of government operate.
Thus, the taxman is seen by an average Nigeria as a monster always ready to prey on its victims, or a plague that must be avoided at all cost.
Benjamin Franklin, Philosopher, observed that “in this world nothing is certain but death and taxes.”
The certainty of taxes have been established long in Nigeria. Before the arrival of the Colonial Masters, Nigeria had been paying taxes in kind by giving farm products to their rulers and rendering free services such as clearing the bush, digging pit toilets, well e.t.c., for the benefits of the community as a whole.
Income tax was first introduced in Nigeria in 1904 by the Late Lord Lugard, various types of taxes there after come into being through subsequences government.
Despite the fact that there are other sources government could generate revenue to fashion a society everyone can be proud of.
Taxes are not new in Nigeria but Value Added Tax (VAT) is the most recent form of tax known to Nigerians.
The idea of introducing VAT in Nigeria came from the report of the study groups set up the Federal Government in 1991, review the entire fan system VAT was proposed and a committee was set up by carrying out feasibility studies on its implementation. In January 1993, government agreed to introduce VAT by the middle of the year, it was later shifted to 1st September 1993, by which time the relevance legislature (Decree No 102 of 1993) would have been made and proper ground work done. VAT, which replaces sales tax in Nigeria, is administered by the Federal Inland Revenue Services (F.I.R.S) through VAT directorate in close co-operation with the Nigeria custom services (NcS) and the State Inland Revenue Services (S.I.R.S).
The rationale behind replacing sales tax with the VAT is in formed by a number of factors and consideration notable:
- The base of sales tax in Nigeria s operate under Decree No 7 of narrow. It covers only nine categories of goods plus sales and services in Registered hotels, motels and similar establishments. The narrow base of the tax which negated the fundamental principles of consumption tax which by nature is expected to cut across all consumable goods and services, VAT base is border and included most professional services and banking transaction which are profit generating sectors.
- Only locally manufacturer good were aimed by the sales tax Decree 1986, although this might not have been the intention of the law. Vat is neutral in this regard. Under VAT, a considerable part of the tax to be realised is form imported goods. This means that under the new VAT, locally manufactured goods will not be placed at a disadvantages relative to imports.
- Since VAT is based in general consumption behaviour of the people, the expected high yield from it will boost from the payer of the tax. In the light of the foregoing, a seminar of this among the people to the effect that government derives the bulk revenue required for meeting its obligation to the people through taxation.
1.1 Statement of the Problem
The introduction of Value Added Tax into Nigeria tax system was greatly antagonised by its critics, more and more organisations are being a registered person. Every organisation that trades in goods and services for a consideration is obliged to register with the FIRS VAT Directorate. The registration covers all the business activities of the organisation. The following are some of the problems encountered in the introduction of Value Added Tax:
- Inaccurate computation of Value Added Tax figures.
- Incompliance of infant industries with Value Added Tax Directorate.
- Illiteracy of some rural areas about Value Added Tax.
- Lack of information on VAT to new industries.
- Incomplete information in the tax invoice of a customer:
With these problems, the VAT directorate found it rather difficult to balance the final account which provides information to other VAT officials. Therefore, there is need for the introduction of Value Added Tax for the progress of modern business organisation.
1.2 Objective of the Study
The broad objectives of this project work are summarised as follows:
- To improve the effectiveness of VAT in reducing over dependence on oil sector by the nation
- To determine the importance of VAT as a source of revenue to the government in Nigeria
- To ascertain whether the federal Inland Revenue Services can help the profit tempo in the nearest future
- To rectify the existing lapses in VAT administration so as to minimise the level of tax evasion.
- To determine the efficiency of Federal Inland Revenue Services in effective administration of Value Added Tax in Nigeria
- To ascertain the extent to which VAT can provide revenue to finance basis infrastructure for industrial development
1.3 Significances of the Study
This research work would serve as a reference to interested parties that is; student, researcher and so on.
It would also add to the body of knowledge. This would enhance better understanding of the importance of Value Added Tax as a source of revenue to Government in Nigeria.
Other corporate or manufacturing organisations, the government and also the individual would understand more about the following:
- How VAT has been able to give a desire impact by generating revenue, which is the beginning of reduction of over dependence on oil revenue.
- How to evaluate the work of the F.I.R.S and necessary suggestion about how to keep up with this great achievement in the Nation Fiscal Policy.
1.4 Research Hypothesis
Hypothesis is a tentative statement about the relationship among variables which is testable.
HO : (Null Hypothesis)
HO : There is no positive correlation between the operation of Vat introduction and its acceptance by the industries.
Hii : (ALTERNATIVE HYPOTHESIS)
Hi : There is a positive correlation between the operation of VAT and its acceptance by the industries.
1.5 Scope of the Study
The research for this study has involved definition of the subject matter. Researcher has endeavour to reveal its urgent report, its work among business organisation, benefits it entail and its surrounding.
1.6 Limitation of the Study
The scope of study is limited by the following:
- Availability of accurate data due to inadequacy of most available of data being approximated. And for audited as far as privacy imposed for logistics reasons by the case study in her vital document and in information.
- Time Factor: The time for the commencement and completion of this project work allows only for a proper but concise account of the subject matter such as contained in the write ups.
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …
Procedure for Downloading the PDF (Docx) Material
Value Added Tax: An Important Source of Revenue to the Government in Nigeria can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.
| Seminar Material Cost ₦3,000 | Project Material Cost ₦5,000 |
Request Complete Material
 | Click here to request the Complete Material via WhatsApp including;
|
TABLE OF CONTENTSPRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- 1.0 Introduction
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
- 2.5 Research Gaps
- 2.6 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "Value Added Tax: An Important Source of Revenue to the Government in Nigeria" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
PRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- 1.0 Introduction
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
- 2.5 Research Gaps
- 2.6 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "Value Added Tax: An Important Source of Revenue to the Government in Nigeria" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
Frequently Asked Questions (FAQ)
Can the material for “The Use of Search Engines for Research by Library and Information Science Students” be used as a guide for Library and Information Science (LIS) Project?
Yes it can be used — The study assesses the Use of Search Engines for Research by Library and Information Science Students in University of Benin in Edo State. Investigation revealed that researchers do not know how to search the right information in the course of their research. Most often, even to synthesize and analyze the information becomes a nightmare to some researchers. The inability of researchers to overcome these problems automatically makes it impossible to explore the potentials of the Internet. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. A total of 150 (one hundred and fifty) respondents were selected for this study to represent the entire population of the study. …
Can this topic “Histological Assessment of the Testes and Hormonal Profile of Adult Male Albino Wistar Rats Following Oral Administration of Myristica Fragrans (Nutmeg)” be used for Anatomy Project?
Yes it can be utilized for research — The study was carried out to assess the Testes and Hormonal Profile of Adult Male Albino Wistar Rats Following Oral Administration of Myristica Fragrans (Nutmeg). Investigation revealed that though nutmeg is used as spice in many food and confectionaries, and has so many nutritional and medicinal properties as well as its functions in many organs and systems of the human body, there is no enough literature regarding the effect of oral administration of nutmeg on the histology of the testis, as well as its effects on hormonal profile (Testosterone). Twenty four (24) adult albino Wistar rats were used for this study. The animals were randomly divided into two groups of (A and B), with each group containing twelve rats respectively. …
Can the material for “Knowledge, Attitude and Utilization of National Health Insurance Scheme Among Health Care Workers” be used as a guide for Nursing (Science) Project?
Yes it can be used — The study was conducted to examine the Knowledge, Attitude and Utilization of National Health Insurance Scheme among Health Care Workers in Nigeria. In achieving this aim, the following specific objectives were laid out to evaluate the problems facing national health insurance scheme and assess the awareness, utilization and perception of healthcare workers towards National Health Insurance Scheme in a Nigeria tertiary hospital. Investigation revealed that in Nigeria, health insurance scheme is new; the target of its introduction is to achieve good health to all citizens in Nigeria. Most of Nigeria are unemployed, resident in the rural areas without hospital, water and infrastructure and inadequate personnel. The research design used in this report is descriptive design, utilizing questionnaire method to obtain …
Can this topic “A Day Without Cockcrow by Labo Yari: A Literary Stylistic Analysis” be used for English Language Project?
Yes it can be utilized for research — The primary focus and interest of stylistics has been the analysis of style in any instance of language use, it examines both oral discourse and written text in order to ascertain the form and effect of choices and to determine essential linguistic properties, structures and patterns influencing perception of oral and textual discourses. This research work provides a literary stylistic analysis of LaboYari’sA Day Without Cockcrow. As a way in which literary appreciation is being made, the major aspects investigated include: the writer’s use of language, stylistic devices, narrative techniques and figurative expressions. These formed the basis of analysis in the course of the study. …
Can the material for “A Survey of Educational Facilities in Private and Public Primary Schools” be used as a guide for Education Project?
Yes it can be used — This research work carried out to survey of educational facilities in private and public primary school in Odeda local government of Ogun State as the case study. The subject of the study were eighty (n =80) teachers . also the design method use in the study was survey design. This instrument used in the method of data collection were on four wlert scale: Available, not available, adequate and inadequate while data was codified into frequency count and analyzed with the use of percentages. It confirm that there are more adequate educational facilities in private primary schools than public primary schools but the major problem is that the government did not assist the educational facilities in public primary school there by restricting to …
Can the material for “The Effect of N-Hexane Extract of Kola Nitida Bark on Liver Function Test” be used as a guide for Linguistics and Communication Project?
Yes it can be used — Kola bark extract have been widely used in tradition medicine for thousand of year, it improves liver functions and provides protection against high fat fed metabolic rats. Present investigations were carried out on the hepatoprotective role of Kola bark extract meal treatment to high fat fed wistar rat. Healthy adult male wistar rats were divided into four groups Group I: rats were fed a standard Laboratory diet (groups match) (20g/rat/day), Group II: rats were fed a high-fat diet alone (3.6g/rat/day), Group III: rats were fed with combined mixture of 70% of high-fat diet with 30% Kola bark meal (9.8g/rat /day), Group/ V: rats were fed with high fat diet and was administered with Lipitor (Atovastatin) (10mg/rat/day) . The rats were sacrificed …
Can the material for “The Impact of Gender Difference in the Career Adjustment of Youths in Isoko North L.G.A.” be used as a guide for Education Project?
Yes it can be used — The study investigates the Impact of Gender Difference in the Career Adjustment using the Youths of Isoko North L.G.A., Delta State as a case study. In achieving this aim, the following specific objectives were laid out to examine the effect of a working youths towards their career adjustment, assess whether career adjustment affects the moral development of the youths, find out whether Gender Difference in the Career Adjustment have positive or negative impact on the Youths in Isoko North L.G.A., Delta State, and proffer solution to the problem of working youths on the career adjustment. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. Primary data were …
Can the material for “Waste Disposal Management in Local Government Administration” be used as a guide for Industrial Relations and Personnel Management (IRPM) Project?
Yes it can be used — A major concern to the government of Lagos state is the problem of solid Waste Management within Lagos metropolis. To ameliorate the situation, the government put in place strategies for effective collection, disposal and management of solid waste to improve the living environment of the people. A new initiative was developed statewide after a pilot scheme was undertake in Surulelre, Kosofe and Shomolu Local Government Areas of the state. The pilot scheme bought to fore the need to regulate private sector participation (PSP) in domestic waste collection and disposal. However, in view of this, the project carried out an overview study of Lagos State Waste Management in the state. Authority to reflect its role and significance in waste management in the state. The …
Can the material for “Safety Management in Building Construction Site” be used as a guide for Building Technology Education Project?
Yes it can be used — The construction industry is considered as one of the most hazardous industrial sector wherein the construction workers are more prone to accidentals. In developed countries of the world such as United Kingdom and United states of America, there is strict legal enforcement of safety in the construction industry and also in the implementation of safety management systems which are design to minimize ordinate accidents at work places. However, occupational safety in countries. Such as Nigeria. --This study investigates the prevalent safety management practices and perceptions in the construction industry in Nigeria. The study was conducted among construction contractors, and government officials, through method of questionnaire survey, interview and discussion, to solicit and advocates or their opinion towards improving the quality …
Can the material for “Development of a Mobile Agent for Preventing Software Piracy on a Network” be used as a guide for Computer Engineering Project?
Yes it can be used — A Mobile Agent is software that can migrate from one node to another in a computer network performing actions on behalf of the user. The aim of the study is to develop A Mobile Agent for Preventing Software Piracy on a Network. In achieving this aim, the following specific objectives were set out as follows to develop A Mobile Agent for Preventing Software Piracy on a Network that will combine an online activation code system with the mobile agent system in a way as to make them a single unit aimed at preventing software piracy through technical means, build a web interface which will act as the data processing element for the combined system and ensure that an unforeseen circumstance …