ABSTRACT
The study is to determine the role of the impact of value added tax (VAT) on Nigeria growth and development. The objective of the same are in suitable the effective of VAT as a suitable alternative to sales tax in Nigeria; to identify the methods of collecting value added tax and to identify possible lapses and loopholes in VAT and its application in Nigeria. The study employs primary and secondary sources of data. The primary source of data was employed to elicit information from the respondent on the concept considered. Based on this information source, survey analysis of inferential methodology using chi-square analysis was adopted as a method of hypotheses testing. From the analysis of the study, it was found out that value added tax contributes to the growth of Nigerian economy, that value added tax is a good source of revenue generation to the Nigerian economy and that there is proper and adequate accounting records as far as VAT is concerned. The study suggested that monthly and quarterly publication of VAT collections and disbursement in a least one or two national dailies as this will serve as a watchdog and promote accountability which will consequently prevent diversion of public funds. Also the computerization of all level and department of tax must be highly favoured.
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