Abstract:
The study examined value added tax on revenue generation in Nigeria. Secondary data was sourced from the Federal Inland Revenue Service (FIRS) ranging from 2000 to 2018. In carrying out the study, Simple regression through Eview and analysis Granger causality test was employed for the analysis. The researcher conducted on integration test and the trace test indicates 1 cointegrating equation at the 0.05 level. It was equally revealed that there is no causality among value-added tax and revenue generation. The study concluded that value-added tax has no significant effect on revenue generation and there is no long-run relationship among value-added tax and revenue generation in Nigeria during the study period. Thus, it is recommended that the fiscal policy should discourage tax avoidance by emulating measures for compliance of value-added tax, incorporate the informal sector into the tax net, and review value added tax exempted services in Nigeria.
