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Impact of value added tax on the performance of businesses a study of Big Brothers Bread, Ikot Ekpene Akwa Ibom State

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Abstract

This project is on Impact of value added tax on the performance of businesses a study of Big Brothers Bread, Ikot Ekpene Akwa Ibom State. To achieve this purpose, we developed some hypotheses and critically reviewed existing theoretical and empirical works of literature. The population elements include the General Managers, Chief Accountants, Finance Managers, Chief Internal Auditors, External Auditors, and Tax Administrators of the selected businesses. A total of sixty (60) respondents were considered for this study but fifty-nine was used as one (1) administered questionnaire was not returned. A well-structured questionnaire designed in a five-point Likert Scale was administered to the respondents to elicit their responses. The data generated for this study were presented in tabular form and analyzed using frequencies and simple percentages while the stated hypotheses were statistically tested using Chi-square. Our findings indicated that Value- Added Tax (VAT) influences the performance and growth of a business. Based on our findings, we recommended that Government should review the VAT Act, to bring it up to date with current economic realities in the world. The exempted items should be reviewed to cover only essential items like foodstuff, education, health and agriculture, and that the governments should ensure that a proper tax incentive scheme is designed and fully implemented to promote the growth of businesses in Nigeria.

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