AN EVALUATION OF TAX PAYERS PRECEPTION ON THE VALUE ADDED TAX IN NIGERIA

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AN EVALUATION OF TAX PAYERS PRECEPTION ON THE VALUE ADDED TAX IN NIGERIA

ABSTRACT

This work was aimed at evaluating tax payers perception on value added tax system in Nigeria.

In 1993 the Federal Government promulgated a Decree in respect of the introduction of VAT, which is a tax on the consumption of goods and services. This was in view of the numerous benefits, which could be derived from the exercise.

Prior to the introduction of VAT sales, tax system was in operation but tax experts see it as being too narrow and also unable to generate the expected revenue for the government. This also led to the need for an alternative tax system VAT.

However all the above are the views of all government the research finds it necessary to evaluate the opinions of tax payers who are the incidence bearers of VAT in order to make a comparative analysis with the opinions of the government. Three samples were used in this study namely; consumers, producers and tax official. The two hypothesis test where all in favour of VAT proving that VAT is a fair and equitable system and it is perceived to favour tax payers.

In order to enhance the performance of the VAT system, the researcher made some recommendations to the Federal Government.

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