INDIRECT TAX AND ECONOMIC GROWTH IN NIGERIA: AN EMPIRICAL ANALYSIS

Abstract

This paper ascertained the extent indirect tax affected Nigerian economic growth. This study employed Ex-Post Facto research design. This study adopted time series data from 2000 to 2022. Data were generated from Federal Inland Revenue Services (FIRS) and World Bank reports. The formulated hypotheses were tested using multiple regression analysis via E-View 9.0. The study revealed that value added tax has a significant effect on gross domestic product in Nigeria, while custom and excise duty tax has a negative significant effect on gross domestic product in Nigeria.  However, the overall outcome shows in prob(f-statistics), that indirect tax has a significant effect the Nigerian economy. Based on the conclusion, the study recommended among others that to preserve the significant effect of VAT, Nigerian government must maintain to peer that the application of VAT guarantees that international trade takes place on an obvious basis and avoids distortions like tax cascading associated with opportunity commodity taxes.