Value Added Tax Administration and Revenue Generation in Plateau State

This study examines the administration of value added tax and its contribution to revenue generation in Plateau State, North Central Nigeria. VAT remains one of Nigeria's most important indirect taxes, accounting for a substantial share of federally distributable revenue. However, administrative inefficiencies, taxpayer non-compliance, and limited enforcement capacity have constrained VAT collections below their potential in many states. This research uses a descriptive survey design and collects data from 85 staff of the Federal Inland Revenue Service office in Jos and 50 business owners across selected sectors in Plateau State. Questionnaires and semi-structured interviews were used to gather data on VAT registration, filing, remittance, and enforcement practices. Descriptive statistics and chi-square analysis were used to analyze responses. Findings reveal that inadequate taxpayer awareness, limited FIRS enforcement presence, and informal sector evasion are the primary obstacles to effective VAT administration in Plateau State. Despite these challenges, VAT contributed an average of 18 percent of state-shared federal revenue during the study period. The study concludes that improving VAT compliance in Plateau State requires a combination of enhanced taxpayer education, expanded FIRS field operations, and digitization of filing and remittance processes. It recommends that FIRS establish a dedicated SME compliance unit in Jos to target the large informal trading sector.

Keywords: value added tax, revenue generation, Plateau State, tax administration, FIRS.