Abstract

Taxation is one of the most important revenue generation in any given economy and as such should receive due attention. The need for taxation in an emerging economy cannot be over-emphasised. Taxation is one source of government revenue that could be reliable in terms of certainty .Government has the mandate to impose tax via its numerous regulations. Emerging economies are nations that have large territories and populations, and are saddled with the responsibility of developmental projects that call for new infrastructure, such as power-generating plants and telecommunications systems. Value Added Tax, usually abbreviated as VAT, could be a mega means of funding such projects. This research adopted. Survey research design because of its ability to view comprehensively and in detail the major question raised in the study: Has Vat maintained an increase in revenue yield since inception? Our finding was a continuous decrease in revenue returns. The increasing revenue loss on VAT proceeds is mind bogging. Vat has a good chance of working in Nigeria if it receives the cooperation of tax collectors. We recommend that the Nigerian government should make adequate provision for retrieving the proceeds of VAT from companies and other agents of collection.