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APPRAISAL OF TAX SYSTEM IN NIGERIA

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Abstract
Over the years, taxation has been taken as a veritable source of funding public sector activities as well as being an economic tool for the management of the consumption, investment, and production patterns. In most developing countries, the imposition of various forms of taxes has been without some forms of feedback on the effectiveness/efficiency of such taxes. This study attempts to appraise the usefulness of the tax system in Nigeria, using Value Added Tax system as a reference point. The significance of this study is that it will enable the government officials, researchers and economic analysts to appraise any type of tax, with the aid of the parameters used in this study. The study used the ability to generate revenue and the ability to influence the consumption patterns as the measurement parameters and found that VAT has been effective but not efficient. The study recommended (among others) that tax authorities should be record/proprietary-conscious such that the cost (budget) of the collection machinery and a target amount payable to the government should be covered by the expected revenue to be generated.

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