Abstract: The study was aimed to examine the impact of Value Added Tax Revenue (VAT) Gaps on VAT Revenue Generation in Nigeria. Initially the study intended to use bottom-top approach, but the idea was later on discarded due to the problems of data availability and reliability, therefore time series data from 2010 to 2018 was used. Descriptive statistics were employed to compute VAT Policy Gap, VAT Compliance Gap and C-Efficiency Ratio for all the relevant years. Auto Regressive Distributed Lag (ARDL) Model and Vector Error Correction Model (VECM) were used to examine the impact of the independent variables on VAT Revenue. The short run empirical result revealed a positive relationship between previous Value Added Tax Revenue, Aggregate Consumption and the dependent variable (Value Added Tax Revenue). Similarly VAT Policy Gap and VAT Compliance Gap have a.......
Keywords: Value Added Tax, VAT GAP, VAT Policy Gap, VAT Compliance Gap, Laffer curve, Autoregressive Distributed Lag, Consumption JEL Classifications: C32, D11, D12, E21, H21, H27, H31
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