Effect of Value Added Tax on Nigeria Economic Development
This paper examined value added tax (VAT) and economic development in Nigeria; specifically examining the effect of VAT on government revenue and economic development as proxied by Gross Domestic Product (GDP). The study used ex-post facto research design; while data were sourced from CBN Statistical Bulletin from 2012 to 2019. Data collected were analyzed using ordinary least square (OLS) regression. The findings of the study revealed that VAT significantly affects total revenue of government and it equally affect economic development. The study recommends that there should be improved VAT collection machinery to improve revenue of government while the amount collected should be invested in productive sector of economy to enhance economic development of Nigeria. Keywords: Value added tax, government revenue, gross domestic product, economic development, Nigeria.