Effect of Value Added Tax, Customs and Excise Duties on Nigeria Economic Growth

This study examined the co-integration analysis of effect of value added tax and excise duties on economic growth in Nigeria. It also looked at the direction of causality among value added tax excise duty, interest rate, exchange rate and economic growth employing the method of Johansen co-integration and the Granger causality tests using data spanning the period 1994- 2014. Results showed that VAT has positive significant impact on GDP in the short run but has negative impact on GDP in the long run with (  = 1.296417; t=7.41; P>|t|= 0.000) and ( =- 13.38159; z=-3.60 , P>|z|= 0.000) respectively. Also, VAT does not granger cause GDP. Excise duty impacted GDP negatively in the short run but positively in the long run with (=-1.111069; t=-5.16, , P>|t|= 0.000) and ( =37.54469; z = 4.07; P>|z|= 0.000) respectively. It is recommended that, once the value added tax impacted economic growth positively in the shortrun but negative in the long run, government should increase the rate of value added tax in Nigeria, this will in turn boosting the revenue generation in Nigeria. Also, government should increase excise duty on tobacco and alcoholic so as to have positive significant impact on economic growth in the short run.

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Indirect Tax and Economic Growth in Nigeria: The Case of VAT

International Journal of Science and Management Studies (IJSMS) ◽

10.51386/25815946/ijsms-v2i6p107 ◽

2019 ◽

pp. 61-66

Author(s):

OBAYORI, Joseph Bidemi ◽

OMEKWE, Sunday Omiekuma Paul

Keyword(s):

Economic Growth ◽

Tax Evasion ◽

Unit Root Test ◽

Value Added ◽

Secondary Data ◽

Value Added Tax ◽

Long Run ◽

Integration Test ◽

The Impact ◽

Excise Duties

This paper empirically investigated the impact of value added tax (VAT) on economic growth in Nigeria from 1994–2018. This was done against the background that VAT as an indirect tax was introduced by the Federal Government of Nigeria in 1993 to replace sales tax with the sole aim of increasing the revenue base of government and make funds available for developmental purposes. The aim of the study is to examine the effect of value added tax on economic growth in Nigeria and determine the impact of other tax revenues particularly, custom and excise duties on economic growth in Nigeria. Thus, secondary data on GDP, VAT revenues, custom and excise duties were sourced from CBN statistical bulletin. Also, ARDL technique was used to analyze data. The variables were subjected to ADF unit root test prior the ARDL and found to be stationary. The ARDL co-integration test showed that there is a long run association amongst the variables. The ARDL short run result showed that the value of VAT has a positive relationship with economic growth in Nigeria. Also, custom and excise duties revenue positively impacted on economic growth in Nigeria. Hence, it was concluded that Value Added Tax (VAT) as an indirect tax system in Nigeria has direct relationship with economic growth in Nigeria since its inception in 1994. It has contributed to the total revenue of the nation as a result of reduction in tax evasion. Based on the findings, the paper recommended that government should put in place adequate measure to ensure that revenue generated from VAT is effectively utilized to develop and grow the economy in order to better the lives of the citizenry.

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Collection of Value Added Tax in Kosovo and Its Effect on Economic Growth

European Journal of Economics and Business Studies ◽

10.26417/ejes.v8i1.p225-233 ◽

2017 ◽

Vol 8 (1) ◽

pp. 225

Author(s):

Teki Shala

Keyword(s):

Economic Growth ◽

Descriptive Analysis ◽

Value Added ◽

Analytical Techniques ◽

Value Added Tax ◽

Statistical Tool ◽

Revenue Collection ◽

Strong Positive Relationship ◽

Level Of Economic Development ◽

Level Of Significance

The revenue collected from the value added tax constitutes the main income of the Kosovo government. For this reason, this research has a great importance in the formulation of effective policies in Kosovo that will subsequently improve the efficiency of tax collection of Value Added and growing fiscal and budgetary stability. This research it will have a descriptive analysis of the trends of VAT collection in Kosovo from 2005- 2015 years using different analytical techniques to examine trends and data structure over the years. We have used two types of analysis; One is the descriptive analysis of trends and the other is the contrast of the descriptive analysis of trends that is the econometric technique used to analyze the VAT effect on economic growth in Kosovo. The source of data for this study is secondary through the Annual Financial Report of the Ministry of Finance of Kosovo and the IMF. In order to analyze the data generated for the study, the statistical tool utilized is OLS technique (multiple regression). One of the key findings in the collection of VAT has been its dependence on the border. Revenue collection is among the most pressing problems and such situation does not guarantee a country's budgetary stability. Also, based on the findings we noted that the VAT share of the gathering in gross domestic product of the Interior of the country has been low compared to other countries in Europe developing, reflecting a low level of economic development. Also from econometric analysis is confirmed that the regression coefficient shows that we have a VAT impact on GDP in Kosovo, because the level of significance is .000, or includes the rate of 1%. Also, the correlation between VAT and GDP shows a strong positive relationship, or statistically interpreted with the increase of VAT, will increase the GDP of Kosovo, these two elements conclude that VAT has a significant impact on economic growth in Kosovo. Furthermore, this research highlight some key issues that policy makers should consider dealing with the collection and effective use of revenue collected from VAT, to improve growth.

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Tax Revenue, Tax Reform and Government Expenditure: The Case of Nigerian Economy (1994 – 2017)

Asian Journal of Economics Business and Accounting ◽

10.9734/ajeba/2020/v18i330283 ◽

2020 ◽

pp. 1-12

Author(s):

Chinedu Jonathan Ndubuisi ◽

Onyekachi Louis Ezeokwelume ◽

Ruth Onyinyechi Maduka

Keyword(s):

Income Tax ◽

Tax Reform ◽

Government Expenditure ◽

Value Added ◽

Series Data ◽

Tax Revenue ◽

Value Added Tax ◽

Tax Reforms ◽

Level Of Significance ◽

Excise Duties

The objective of this study is to empirically investigate the effect of tax revenue and years tax reforms on government expenditure in Nigerian. Tax revenue were explained using custom and excise duties, company income tax, value-added tax and tax reforms explained by the years in which reforms took place measured by dummy variables as proxies. In conducting this research, an annual time series data from central bank statistical bulletins and Federal Inland revenue Service of Nigeria spanning from 1994-2017 were employed. The data were tested for stationarity using the Augmented Dicker-Fuller Unit Root Test and found stationary at first difference. The Johansen co-integration test was also conducted and showed that the variables are co-integrated at the 5% level, which implied that there is a long-run relationship between the variables in the model. The presence of co-integration spurred the use of vector error correction model and VEC granger causality to determine the effects and decision for the study objective. Findings revealed that Customs and Excise Duties has positive (3.96) and significant (-8.38) impact on government expenditure at 5% level of significance (t=8.38>1.96), Company Income Tax has negative (-1.25) and significant (2.98) impact on government expenditure at 5% level of significance (t=2.98>1.96), Value added tax has positive (8.54) and significant (3.90) impact on government expenditure at 5% level of significance (t=3.90>1.96) and Tax reforms periods has negative(-3.52E+12) and significant (8.39) impact on government expenditure at 5% level of significance (t=8.39>1.96). The study thus concluded that tax revenue and tax reforms significantly affect the Nigerian economy with the direction of causation running from government revenue to government expenditure, supporting the revenue-spend or tax-spend hypothesis. It was recommended while seeking to increase its revenue base via tax should also increase their expenditure profile to create a balance with the tax revenue and every other tax reform should be geared towards this balance.

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I. Customs, Excise Duties and Value Added Tax

International and Comparative Law Quarterly ◽

10.1017/s0020589300059479 ◽

1996 ◽

Vol 45 (3) ◽

pp. 736-740 ◽

Cited By ~ 2

Author(s):

Karl Newman ◽

Michael Michael

Keyword(s):

European Union ◽

Value Added ◽

The European Union ◽

Value Added Tax ◽

Excise Duties

The enlargement of the European Union from 1 January 1995 by the accession of Austria, Finland and Sweden inevitably necessitated amendments to much Community legislation.1

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PENGARUH PERTUMBUHAN EKONOMI TERHADAP PENERIMAAN PAJAK PENGHASILAN DAN PAJAK PERTAMBAHAN NILAI

Media Riset Akuntansi Auditing & Informasi ◽

10.25105/mraai.v7i1.972 ◽

2007 ◽

Vol 7 (1) ◽

pp. 83

Author(s):

Herman ,

Keyword(s):

Economic Growth ◽

Gross Domestic Product ◽

Income Tax ◽

Government Expenditure ◽

Value Added ◽

Value Added Tax ◽

Tax Collection ◽

Economy Growth ◽

Test Result ◽

Is Value

<p class="Style1">The purpose of this research is to find out the effect of economy growth toward tax collection, especially income tax andiralue added tax. The data covered from 1985 until 2005. Some variables included in this researdi such as: consumption, investment, government expenditure and import, and dependent variable is value added tax and income tax collection. The analyzing tools which used are nonnallytest, analyzing of variance, and goodness of fitand t-test. Result of analysis finds that the economy growth has significant effect to the income tax collection and value added tax collection.</p><p class="Style1">Keywords: Economic Growth, Gross Domestic Product, Income Tax, and Value Added Tax</p>

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Taxation and Transportation: Granger Causality Approach in Nigeria

Studia Universitatis „Vasile Goldis” Arad – Economics Series ◽

10.2478/sues-2021-0011 ◽

2021 ◽

Vol 31 (3) ◽

pp. 1-20

Author(s):

Adegbite Tajudeen Adejare

Keyword(s):

Granger Causality ◽

Value Added ◽

Lagrange Multiplier Test ◽

Value Added Tax ◽

Corporate Tax ◽

Long Run ◽

Short Run ◽

Employment Generation ◽

Analytical Tools ◽

Excise Duties

Abstract This study gauges taxation's effect on transportation from 1981 to 2019 in Nigeria. This study further assesses the bearing of causality among Transportation, Corporate tax, Petroleum profit tax, Value added tax and Custom and Excise duties. Analytical tools such as VECM, Johanson Test for Cointegration, Vector Autoregression and granger causality Wald (GCW) test are adopted for analysis. Diagnosis tests such as the Lagrange-multiplier test, Jarque-Bera test and Eigenvalue stability condition are carried out to examine autocorrelation, stability and normality tests respectively. Outcomes divulge that corporate tax has a positive short-run and long-run influence on transportation. Petroleum profit tax, Value added tax and Custom and Excise duties also impact transportation positively and significantly both in the long run and short run as deduced from empirical analysis. This reveals that all the components of taxation observed influence transportation positively both in the long run and short run in Nigeria. Conclusively, taxation impacts transportation positively and significantly both in the short run and long run. This translates that taxation income has been utilized effectively to upsurge transportation in Nigeria. It predicts that transportation will perform excellently in terms of economic development and employment generation if taxable income is properly monitored and utilized effectively.

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