Vat in Maharashtra

Summary of findings: From the thorough research undergone for the research study, the following conclusion were made on the findings:

• VAT is properly and effectively administered, the problem VAT faced now is that of inadequate and well trained personnel

• VAT has economic implication on consumption pattern

• VAT has high impact on government revenue

• The existing tax laws on VAT are adequate for efficient collection and returns

• A substantial pattern of Nigerians are aware of the existence of VAT

• Though, VAT has been known to be defective in some areas, it has been able to serve the purpose for which it was introduced to a considerable length

• The decision by the government to replace the former sales tax with Value Added Tax has been a worthwhile one

CONCLUSION

The introduction of the Value Added Tax to replace the former sales tax, which was adjusted to be narrow in coverage had only nine items in its list inspite of its good intentions and challenging prospects. The new tax system has been advocated on eliar to manufacturers, which is capable of enhancing productivity this reactivating our depressed economy. A year after its commencement, the program appears not to be the monster that many Nigerians though it was. It is hoped that it may turn out to be another gold mine for the government.

Although, the impact of VAT on government revenue is significant currently, attempt can be made to increase revenue from this source, if the under mentioned recommendation can be given adequate considerations, we except government to incorporate all these into its planned reviewed to VAT, so that the burden, which its execution is causing manufacturers and final consumers, can be appropriately ameliorated.

RECOMMENDATIONS

After a close study and review of literature on the subject, the following recommendations are hereby prescribed:

• Federal Inland Revenue Service must henceforth perform the management functions of tax administration

• From the above,...