AN EVALUATION OF TAXPAYERS PERCEPTION OF THE VALUE ADDED TAX IN NIGERIA


AN EVALUATION OF TAXPAYERS PERCEPTION OF THE VALUE ADDED TAX IN NIGERIA

ABSTRACT

This work was aimed at evaluating tax payers perception of the 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, the 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 taxpayers 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 taxpayers.

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

 TABLE OF CONTENTS

Certification

Declaration

Dedication

Acknowledgement

Abstract

Table of contents

CHAPTER ONE

1.0 Introduction

1.1 Statement of the problem

1.2 Purpose of the study

1.3 Significance of the  study

1.4 Organisation of the study

1.5 Research  questions

1.6 Hypothesis

1.7 Definition of terms

1.8 Test of data

1.9 Limitation of the study

CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction

2.2 Some definitions of Taxation

2.3 Importance of Taxes

2.4 Taxes evasion and avoidance

2.5 Value added tax

2.5.1 Background of VAT

2.5.2 Origin of VAT

2.5.3 Sales Tax

2.5.4 VAT as replacement of sales Tax

2.5.5 Position of VAT in sales taxes

2.5.6 Value added tax Nigeria sales tax

2.5.7 Forms of VAT

2.5.8 Major features of VAT

2.5.9 The Nature of VAT 

2.6.0 Administration and Policy

2.6.1 Registration

2.6.2 Supplies

2.6.3 Schedules of VAT Decree 102 of 1993

2.6.4 Determination of value

2.6.5 Returns

2.6.6 Remittance of VAT

2.6.7 Liability to VAT

2.6.8 Records and Account

2.6.9 VAT Inspection

2.7.0 Offences and penalties

2.8.0 Administration of VAT on imports 

2.8.1 Registration

2.8.2 Vatable imported services

2.8.3 Determination of values

2.8.4 The right of Appeal

2.8.5 Assessment

2.8.6 Payment

2.8.7 Input tax

2.8.8 Evidence of input tax

2.8.9 Rendition of collection: Return by Nigeria Custom

2.9.0 Advantages of VAT

2.9.1 Demerits of VAT

2.9.2 Merits of VAT in Nigeria Economy

CHAPTER THREE: METHODOLOGY

3.1 Introduction

3.2 Sampling procedure

3.3 Method of data collection

3.3.1 Questionnaire design and administration

3.3.2 Personal interview

3.3.3 Survey of the existing documents

3.3.4 Statistical technique   

CHAPTER FOUR PRESENTATION AND ANALYSIS OF DATA AND FINDINGS

4.1 Introduction 

4.2 Presentation and analysis of data

4.3 hypothesis testing

CHAPTER FIVE:FINDINGS, RECOMMENDATION AND CONCLUSION

5.1 Findings

5.2 Recommendation

5.3 Conclusion

5.4 Recommendation for further research

REFERENCE

BIBLIOGRAPHY

CHAPTER ONE

INTRODUCTION

Taxation has long been practised in Nigeria. Initially, only men were expected to pay taxes but now all people working and anybody found in the capacity of paying tax are obligated to pay tax.

Tax in a mandatory levy on income charged for the purpose of carrying out government activities losses incurred by the government in recent times through tax evasion is increasing rapidly despite the pathetic financial and economic state of the country. There is a daily report in newspaper and magazines that the government losses billions of naira yearly due to tax evasion and the fraudulent practices of the tax officials. This has attributed to many factors. Most people attribute this to the fact that the country’s tax system is highly income base and since income is taxed only at one point or stage, a lot of evasion results.

In Nigeria, many different goods are consumed. For this reason, tax experts see consumption as the actual habit and as such, the need to shift the tax base from income tax to consumption tax. This necessitated the introduction of sales tax in Nigeria through degree N0. 7 of 1986.

However, it was discovered that the sales tax is narrow because it does not cover a lot of goods and services. This prompted the introduction of Value Added Tax (VAT) in Nigeria.

The idea of introducing VAT in Nigeria came from the report of the study group set up by the Federal Government in 1991 to review the entire tax system, VAT was proposed and a committee was set up to carry out feasibility studies on its implementation. In January 1993, the government agreed to introduce VAT through the instrumentality of the VAT Degree 102 of 1993. This was meant to be effective from January 1 1994. It came on stream as a replacement to its antecedent, the sales tax, which was characterized by a lot of lapses inadequacies and restrictive coverage. VAT is a consumption tax imported on all manufactured goods, industrial raw material and other imported into or product in Nigeria a single rate of five per cent. Potentially, it dragged cover virtually everybody, since one thing or the other except in the cases of specific items that are exempted.

Several benefits which the government expected to derive from value-added tax (VAT) were enumerated. During several others they are

i.        Increase in revenue generation

ii.       Facilitation of administrative enforcement

iii.      Reduction in revenue losses through tax evasion

iv.      Enhancement of documentation of the transaction

v.       Encouragement of rapid industrial growth by allowing credit for input taxes for capital goods.

vi.      Maintenance of neutrality in tax payment since it is broad-based and has a single rate.

The government has conveyed these benefits to the public and has also organized workshops and seminars to educate the producers, suppliers, consumers, tax officials and the general public on the VAT system in Nigeria. However, the perception of taxpayers is necessary at this stage and this is what this research is to find out.

STATEMENT OF THE PROBLEM

The Federal Government has made frantic efforts to convince the public of the need for a VAT system in Nigeria. It has informed the public of the benefits which have been derived from VAT, for example, a reduction of tax evasion, increase in government revenue and so on. This implies that the government sees VAT as a good tax system. But the taxpayer may not have the same view as the government, they may they will most definitely be reluctant to pay.

The problem or the question, therefore, is what is the perception of the taxpayers or the public on tax systems? Do they see it as being important as the government does? It is in view of the above questions that the researcher has decided to find out and evaluate the perception of the public or taxpayers on the valued added tax in Nigeria.

PURPOSE OF THE STUDY

It was the purpose of the study to evaluate the views of the taxpayers on Value Added Tax (VAT). On the basis of this, the researcher will be able to say if VAT has done more harm than good on the part of the taxpayers. The finding will also enable me to make recommendations that will bring about modification if necessary, that will strengthen the machinery for the administration of VAT and also to its acceptance by the public.

.

AN EVALUATION OF TAXPAYERS PERCEPTION OF THE VALUE ADDED TAX IN NIGERIA



TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.ORG

Researchwap.org is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.org guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.org is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.org" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.