ASSESSMENT OF THE EFFECT OF VAT ON CONSUMPTION BEHAVIOR: (THE CASE STUDY OF SELECTED HOUSEHOLDS IN MAIDUGURI)

ASSESSMENT OF THE EFFECT OF VAT ON CONSUMPTION BEHAVIOR: (THE CASE STUDY OF SELECTED HOUSEHOLDS IN MAIDUGURI)

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  • Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
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ABSTRACT

VAT has imitated relationship in daily life, and even it can happen everywhere, every day which has effect on people’s daily life. According to Statement of Standard Accounting Practice (SSAP, 1993) which states that “VAT is a tax on the supply of goods and services which is eventually borne by the final consumer but collected at each stages of the production and distribution chain”. This study, the assessment of the effect of Value Added Tax on consumption Behaviour was undertaken to examine the influence of VAT on consumers’ pattern of consumption. The study examined five wards in Maiduguri and adopted the descriptive method of data analysis. The data were collected through primary and secondary methods. The data collected through the questionnaire was analyzed using the SPSS. The study found out that there is low awareness of VAT among the residents especially in the rural area. It further finds out that VAT payers in these areas do not understand the impact of VAT on their daily purchase. However, VAT decreases the purchasing power of these households. The study recommended an awareness campaign in these areas and inclusion on the knowledge of VAT in the academic curriculum.


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