Citation:

Francis Olatayo OLASUNKANMI, Joshua Adewale ADEJUWON. "Valued Added Tax Automation and Revenue Generation in Nigeria" International Research Journal of Economics and Management Studies, Vol. 2, No. 4, pp. 225-236, 2023.

Abstract:

The study examined Valued Added Tax (VAT) and Automation of Revenue Generation in Nigeria. Specifically, it examined the effect of the adoption of a manual VAT system on Revenue Generation, determined the effect of the adoption of VAT automation through the Integrated Tax Administration System process on Revenue Generation, assessed the impact of the adoption of Valued Added Tax automation through Amanda process on Revenue Generation; examined the relationship between adoption of Valued Added Tax automation through TaxPro-max system and Revenue Generation. Ex-post-facto research design was employed, and the required data were gathered from the FIRS statistical bulletin from 1994-2021. Four hypotheses were tested using ordinary least squares with the aid of the Economic view (E-view). The findings revealed that VAT through a manual process and revenue generation (ẞ1=-461.9704; p=0.0893>0.005); VAT through Integrated tax administration system and revenue generation (ẞ2 = -260.2918; p=0.0920>0.005); VAT through Amanda process and revenue generation (ẞ3 = -205.4177; p=0.0917>0.05); VAT automation through TaxPro-Max (ẞ4 = -4250.894; p=0.0066 < 0.05). The results implied that amid the variable measured, only TaxPro-Max has a significant relationship with Revenue Generation. The study, therefore, concluded that the integrated tax administration system had the capacity to deliver its required tax revenue. However, the taxpayers lacked operational understanding of the process, likewise the Amada process. The TaxPro-Max system performed significantly despite a year of data observation (i,e, 2021). This indicated that if TaxPro-Max is allowed for 5 to 10 years, automation of the tax system would gain a full length of operation in Nigeria. The study also recommended that the Nigerian Tax Administration at all levels should invest more strategies to improving TaxPro-Max in order not to suffer the same short-comings experienced by the previous methods of the VAT collection system.

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Keywords:

Value Added Tax, Revenue Generation, Manual Process, Integrated Tax Administration System, Amanda, TaxPro-Max.