Description
This study was intended to evaluation of role of value added tax as a source of income in Nigeria. This study was guided by the following objectives; To evaluate the role of value added tax as a source of income in Nigeria.To examine the level of proper utilization of VAT income generated by Nigeria government. To examine the effect of income generated from value added tax on economic development in Nigeria. The study employed the descriptive and explanatory design; questionnaires in addition to library research were applied in order to collect data. Primary and secondary data sources were used and data was analyzed using the chi square statistical tool at 5% level of significance which was presented in frequency tables and percentage. The respondents under the study were 200 staff of federal inland revenue service, Lagos. The study findings revealed that the impact of VAT on government income is high; Based on the findings from the study, efforts should be made by the Nigerian government and stakeholders in creating an enabling environment for micro finance banks to thrive.