Assessment of Problems and Prospects of Value Added Tax Implementation in Nigeria Economy.

Abstract

The fundamental basis for carrying out this study was the recent introduction of value added tax (VAT) to the Nigerian economy. This new development has been attracting the attention of individual both in private and public sectors of the economy. On the problem and prospects of value added tax in Nigeria is in the intellectual areas in Nigeria. They might perhaps be due to the characteristic of the new tax system which is broader and dynamic when viewed in the context of the Nigeria micro economic and socio-political systems. The study further examined the prevailing problems being encountered in the system with a view of making constructive recommendations, which will enhance effective administration of VAT in Nigeria. In view of achieving the objectives of this study, various relevant literature of eminent writers in the field of taxation, references were also made for easy understanding. In the course of this study, it was discovered that value added tax is the most innovative means of generating revenue in the country and its introduction in Nigeria has long been overdue especially now that Nigeria is very vast in the payment of direct tax. Value added tax has all the advantages of modern-day taxation and by introducing it in Nigeria it is a move in right direction