Value Added Tax (VAT) Revenue and Imported Goods: Nigeria Experience
Value Added Tax (VAT) Revenue and Imported Goods: Nigeria Experience

Summary/Abstract: This study evaluated the effect of imported goods on VAT revenue from 1994 to 2018 in Nigeria. This study also assessed causality direction amid VAT revenue, imported goods (import), exchange rate (EXCH), interest rate (INTR) and inflation rate (INFL) actively employing Units root, VECM, Granger causality, and Johansen co-integration tests. The Results showed that import (LOGIMPORT) had positive significant effect on Value added tax revenue both in the short run (LOGVAT) and in the longrun. Also, exchange rate and inflation rate have positive insignificant influence on VAT revenue also; there exist bi-directional causality between value added tax revenue and imported goods. IMPORT granger- cause VAT, VAT granger-cause IMPORT. Conclusively, imported goods and services have positive short run and long run significant influence on value added tax revenue in Nigeria.

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