ABSTRACT
This work was aimed at evaluating tax payers perception on value added tax system in Nigeria. In 1993 the Federal Government promulgated a Decree in respect of the introduction of VAT, which is a tax on the consumption of goods and services. This was in view of the numerous benefits, which could be derived from the exercise.Prior to the introduction of VAT sales, tax system was in operation but tax experts see it as being too narrow and also unable to generate the expected revenue for the government. This also led to the need for an alternative tax system VAT. However all the above are the views of all government the research finds it necessary to evaluate the opinions of tax payers who are the incidence bearers of VAT in order to make a comparative analysis with the opinions of the government. Three samples were used in this study namely; consumers, producers and tax official. The two hypothesis test where all in favour of VAT proving that VAT is a fair and equitable system and it is perceived to favour tax payers. In order to enhance the performance of the VAT system, the researcher made some recommendations to the Federal Government.
CHAPTER ONE INTRODUCTION
Taxation has long been practice in Nigeria. Initially, only men were expected to pay taxes but now all people working and anybody found in the capacity of paying tax are obligated to pay tax. Tax in a mandatory levy on income charged for the purpose of carrying out government activities losses incurred by government in recent times through tax evasion are increasing rapidly despite the pathetic financial and economic state of the country. There are daily report on newspaper and magazines that government losses billions of naira yearly due to tax evasion and the fraudulent practices of the tax officials.