ABSTRACT
An evaluation of Value Added Tax by VAT Decree 102 of 1993 as a source of revenue to the federal government is important to both the government and the Nigerian public. It has been the general belief that taxation is used by government to raise funds and also as a major fiscal tool
for economic development. Taxation is aimed at redistributing income among the citizenry. Government introduced various tax policies for the enhancement of the standard of living of its citizens and economic development. This project revealed that the revenue from the Value Added Tax
(VAT) has been very encouraging. The VAT tax now appears to be second position i.e. after petroleum profits tax in the revenue accruing from tax.
If most of the problems highlighted in the study are taken care of one should not be surprised if Value Added Tax (VAT) takes the first position
especially with the uncertainties about the price of crude oil in the international market.
