EFFECT OF VALUE ADDED TAX, COMPANY INCOME TAX AND CUSTOM AND EXCISE DUTIES ON NIGERIAN ECONOMY

Abstract

The study investigates how economy of our nation can be improved through tax revenue by considering the contribution of value added tax (VAT), company income tax (CIT) and Custom and excise duties (CED) to Nigerian economy in order to assist government to meet its recent challenges of revenue shortages. Secondary data relating to relevant tax revenue were obtained on yearly basis for a period of twenty two years covering 1994 to 2015. We employed OLS regression to determine the impact of VAT, CIT and CED on economy (GDP). The study established a significant impact of VAT on GDP. Meanwhile, CIT and CED have no significant impact on GDP. The study thus recommends that the government should improve on collection of tax revenue through CIT and CED by reducing leakages and ensure maximum transparency in tax administration.