DISMANTLING OBSTACLES AND IMPEDIMENTS TO EFFICIENT ADMINISTRATION OF VALUE ADDED TAX IN NIGERIA

Abstract

The present paper seeks to unravel the obstacles impeding efficient administration of Value Added Tax (VAT) in Nigeria VAT is in a type of tax charged on supply of goods and services being imposed at each stage of the process of production. Law of taxation has conferred different tiers of government with powers to impose and collect taxes. Among the different taxes collected by the federal government is the VAT. However, the purpose and intention of introduction of VAT has not been fully realized, owing to inefficiency and ineffectiveness in administration of the tax, among others. Thus the aim and objective of this paper is to pin-point those impediments with a view to surmounting them. The methodology adopted was doctrinal, using the primary and secondary sources. The paper, in the main, examined the legal framework, the legal issues arising there from, the nature and application of VAT, etc. It was the findings of the paper among others that although VAT is a viable economic option that could be explored with optimum benefit, certain problems among which is administrative have hampered these benefits. In that light, the paper concluded with strong recommendations for amendment of the extant VAT laws, restructuring of administrative and revenue sharing formula of VAT, mounting of public enlightenment/educational programmes to make VAT more acceptable, among others.