Value Added Tax Regime in Nigeria: A Case for Poverty Reduction and Economic Growth 1986-2020
This study used simple linear regression analysis to examine the value-added tax regime in Nigeria as a case study of poverty reduction and economic growth from 1986 to 2020. The methodology findings of the study showed a positive correlation between value-added tax, poverty reduction, and economic growth. The study confirms that rising value-added taxes typically correlate with economic expansion, consequently, lower levels of poverty. Additionally, a surprising positive correlation between Value Added Tax (VAT) and Economic Growth is discovered. Since the study concluded that regular updates to the value-added tax’s operational framework and policies to reflect changing economic realities are essential to an effective tax system, it follows that increasing public education by the FIRS, Central Bank, and other pertinent institutions is necessary to counter the public’s perception of the tax as being non-progressive.
Keywords: Value Added Tax (VAT), Poverty Reduction and Economic Growth
