The Effect of Value-Added Tax on Economic Growth of Nigeria

Monica Adele Orisadare and Kazeem Fasoye

African Journal of Economic Review, 2021, vol. 10, issue 01

Abstract: The paper examined the effect of VAT on economic growth in Nigeria between 1994 and 2020 using consumer price index (CPI) as a threshold. A technique of Threshold Vector Autoregressive (TVAR) was employed and the results reveal that a VAT above the 10 percent threshold value endangers the economy while a VAT below the 7.59 percent threshold value does not harm the economy; rather, it improves people's well-being. It is therefore recommended that Nigerian economy should maintain the lower VAT threshold to cushion the effect of ever rising CPI on the citizens.

Keywords: International; Development (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:afjecr:320572

DOI: 10.22004/ag.econ.320572

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