The Effect Of Value Added Tax On The Nigeria Tax System: A Case Study Of Revenue Mobilization And Fiscal Allocation Commission, Abuja

CHAPTER ONE INTRODUCTION 1.1Background of the study Taxation is the central part of modern economic development. Their importance is not only due to the fact that it is by far the most important of all incomes, but also to the severity of the problems caused by the current high tax burden (Greene, 2011). The main objective of taxation is to generate revenue. In a welfare state, a large amount of tax is required to meet its obligations. According to Musgrave (2008), taxation is used as a means to achieve certain social goals, ie as a means of redistributing wealth and reducing inequalities. Ta…