The Complete Project Research Material is averagely 95 pages long and is in Ms Word Format, it has 1-5 Chapters. Major Attributes are Abstract, All Chapters, Figures, Appendix, References Level : BTech/BSc/BA/HND/ND.
Get the complete project »
1.1 BACKGROUND OF THE STUDY
Value Added Tax (VAT) is a system of tax recently introduced in Nigeria, which is based on imposition, and charging 5 percent tax on certain goods and services imported or produced locally in Nigeria. The idea of introducing Value Added Tax in Nigeria came from the report of the study groups set up by the Federal Government in 1991 to review the entire Tax System.
Value Added Tax was proposed and a committee was set up to carry out feasibility studies on its implementation. In January 1993 government agreed to introduce Value Added Tax by the middle of the year and it was later shifted to 1st September, 1993. Value Added Tax is a replacement of the existing sale’s Tax, which has been in operation under Federal Government Legislated Degree N0. 7 of 1986.
In some advanced countries of the world, this system of taxation had been in operation and its enormous benefits being harvested. These countries are United States of America Britain, China and a host of others. Nigeria on her own wants to take the bull by the horn by introducing value added tax like other benefiting countries earlier mentioned above despite all pitches that may appear to impede the good intentions of government to introduce and implement the system.
The value added tax system has been introduced and made to get its location offices in all the 36 states of the Federation and Abuja. To ensure that the system works most effectively and efficiently so that the main purpose or goal for which the system was introduced is achieved, the then federal military government made a decree that backs its smooth take off. The value Added Tax System has taken off in earnest and its application on various sectors of our economy in Nigeria and some states.
Especially Enugu, seems to be producing good and bad effects on the economy generally.
The good effect of value added tax include the reduction of the tax evasion, provision of incentives to exporters, reduction of government excessive dependence on the oil sector as well as enhancing the provision of social infrastructure.
It produces bad effect on the general economy on the ground that in some sectors of our economy like manufacturing, its application especially on industrial machines, raw materials and other manufacturing inputs would cripple the growth of the real and exports sectors.
Despite this and high hopes in official circles that the newly introduced Value Added Tax would rest government’s over dependence on the oil revenue for its programmes, its implementation appears to hit the brick walls. This is because there is fear that the tax policy may actually escalate the rate of socio-economic disequilibrum in the economy.
Enugu State, which is the scope of this project, was created on 27th August 1919 with particular reference to Enugu North Local Government Council, which was also created in 1991.
1.2 STATEMENT OF PROBLEM
Value Added Tax and its introduction into the economy is a giant revenue generating mechanism, which will go a long way to boast revenue generation in the economy. It is based on this premise that there becomes the need to examine critically the mechanism or how far the imposition system of value Added Tax in various sectors of the economy has failed. The study will therefore address the following issues.
1. How the money is being collected
2. How t he money is disbursed
3. What the money is used for after disbursement
PURPOSE OF THE STUDY
The following are the purpose of the study of Value Added Tax:
1. To discover the techniques used in collecting the revenue.
2. To determine the type of products and services which are vatable non-vatable.
3. To understudy the distribution and usage of the money collected from Value Added Tax.
1.3 RESEARCH QUESTION
The following research questions were used for the purpose of this project. They include:
1. How is Value Added Tax collected and at what percentage.
2. How is the money collected disbursed and at where is it disbursed;
3. When does each money collected by Value Added Tax officials be disbursed?
4. At what percentage is the money collected be disbursed to states and local government councils.
5. Who is in charge of collecting both state and local government councils share;
6. How is the money collected after sharing by each state and local government council used.
1.4 SIGNIFICANCE OF THE STUDY
The study would be useful in modifying the economy of Enugu State as it stands the chance of adding more revenue to the already existing revenue of the state. The study also stands as an eye opener to the citizens of Enugu State in highlighting them the amount that comes into the state purse through Value Added Tax.
1.5 SCOPE AND LIMITATION
The scope of this project is Enugu State with particular reference to Enugu North Local Government Council.
1.6 DEFINITION OF TERMS
1. Value Added Tax (VAT):- This is tax on spending. The tax is born by final consumer of the goods and services because it is included in the price paid.
2. Federal Inland Revenue Services (FIRS):- This provides a free information and advisory services to help you. Federal Inland Revenue Services also collect the money on value added tax and pays same to the Central Bank of Nigeria within the state it operates. The Central Bank of Nigeria within the state pays same to Central Bank of Nigeria, Abuja.
3. Registered Person (RP):- This is any person registered under section 8 of the Decree.
4. Authorized Office (AO):- This means an officer who has been authorized by the board to perform any function under or in pursuance of this Decree.
5. Board:- This means the Federal Board of Inland Revenue.
6. Tax Period (TP):- This means one calendar month commencing from the beginning of the month to the end of that month.
Share a Comment
You can find more project topics easily, just search
SIMILAR ACCOUNTING FINAL YEAR PROJECT RESEARCH TOPICS
1. THE IMPACT OF INTERNATIONAL FINANCIAL STANDARDS (IFRS) ON THE QUALITY OF FINANCIAL STATEMENTS (A CASE STUDY OF FIRST BANK PLC)» CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY This study sets out to examine whether the impact of International Financial Reporting Standards...Continue Reading »
70 pages | 257 hits | Source: ACCOUNTING
2. AUTOMATED FORENSIC AUDITING AND FRAUD CONTROL IN NIGERIA (A Case Study Of The Economic And Financial Crimes Commission, Port Harcourt)» ABSTRACT The topic “Automated forensic auditing and fraud control in Nigeria” is a critical concept in modern days accounting, and our cou...Continue Reading »
83 pages | 169 hits | Source: ACCOUNTING
» ABSTRACT The study evaluated the accounting system in use by small scale enterprises operating in Uyo Metropolis of Akwa Ibom State. The study was nec...Continue Reading »
52 pages | 115 hits | Source: ACCOUNTING
» SECTION ONE: INTRODUCTION 1.1 BACKGROUND OF THE STUDY 1. Introduction Capital structure simply means the way a firm finance itself through debts, equi...Continue Reading »
43 pages | 156 hits | Source: ACCOUNTING
5. EFFECT OF PUBLISHED FINANCIAL STATEMENT ON SHAREHOLDERS INVESTMENT DECISION (A STUDY OF GUINNESS NIGERIA BREWERIES LAGOS)» CHAPTER ONE 1.0 INTRODUCTION 1.1 BACKGROUND OF THE STUDY Each person like every business requires some measures of both financial position and financi...Continue Reading »
77 pages | 44 hits | Source: ACCOUNTING
» CHAPTER ONE 1.0 INTRODUCTION 1.1 BRIEF OVERVIEW OF THE SUBJECT OF STUDY It is generally agreed that finance is the main stay of any economy, be it pub...Continue Reading »
55 pages | 162 hits | Source: ACCOUNTING
7. THE ROLE OF ACCOUNTANT IN A CORPORATE FINANCIAL ORGANISATION CASE STUDY OF FIRST BANK OF NIGERIA (ADO BRANCH) ACCOUNTING DEPARTMENT» CHAPTER ONE INTRODUCTION 1.1. BACKGROUND TO THE STUDY Corporate Financial organizations are setup with the principal objective of creating wealth for ...Continue Reading »
54 pages | 226 hits | Source: ACCOUNTING
» ABSTRACT Usability is the extent to which a product can be used by specific users to achieve specified goals with effectiveness, efficiency, and satis...Continue Reading »
88 pages | 96 hits | Source: ACCOUNTING
9. A COMPARATIVE ANALYSIS OF THE IMPACT OF INVENTORY VALUATION METHODS ON FINANCIAL REPORT STATEMENT IN SOME MANUFACTURING COMPANIES IN ENUGU STATE» ABSTRACT This research work was conducted on with special reference to the impact inventoryvaluation methods has on financial report statements of man...Continue Reading »
64 pages | 244 hits | Source: ACCOUNTING
10. AN EMPIRICAL ANALYSIS OF THE VALUE OF ACCOUNTING INFORMATION SYSTEM IN AN ORGANIZATION (A CASE STUDY OF NIGERIAN RAILWAY, ENUGU)» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY Accounting project or information system has become an important component of successful business...Continue Reading »
73 pages | 148 hits | Source: ACCOUNTING