The Effect of Value Added Tax (Vat) on the Profitability of Manufacturing Firms
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Abstract on The Effect of Value Added Tax (Vat) on the Profitability of Manufacturing Firms
Taxation in Nigeria, has given rise to several problems that has threaten the profitability of many companies in Nigeria. Among this problems include trained personnel, corruption, lack of tax management and poor implemented policies. The population covers the entire United Cement Company of Nigeria Limited – Cross River State. Samples of 222 persons were selected, the research uses a descriptive research design. The instrument used for data collection was from questionnaire. The research questions were raised about the significance and implementation of value added tax on the profitability of manufacturing firms, 2(two) hypothesis was formed and were tested using the t-statistic test at 5% level of significance. The result obtained shows there is a significant relationship or effect of value added tax on profitability and cost of production, this means that value added tax can systematically reduce the profitability of manufacturing firms and increase cost of production, based on the major findings, it’s recommended that value added tax should be easy to comply with and should interfere as little as possible with the free functioning of business to enable them survive.
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