Value Added Tax Allocations to Local Governments in Nasarawa State

Research areas: Year: 2014
Type of Publication: Article Keywords: VAT Local Government Grassroots Allocation
  • Kwakipi, Anyuabuga Stephen Akodos Egga and Affiru
Journal: Journal of Social Sciences and Public Affairs Volume: 4
Number: 2 Pages: 20 - 33
Month: December
Local Governments are created to bring government activities closer to the grassroot people through provision of basic necessities of life. The paper sets to examine the contributions of Value Added Tax (VAT) to the development of local governments in Nasarawa state. Primary and secondary data were collected through the administration of questionnaire on personnel of 8 selected Local governments out of the thirteen Local government councils in Nasarawa state, and the collection of detailed breakdown of allocations to Local governments from the office of Accountant General of the Federation and the federal ministry of finance for the period 2009-2013. Tables and simple percentages were used to analyze the data collected. The paper finds that VAT allocations to Local governments in Nasarawa state pass through the same tunnel as the federation account allocation, where little or not is done with the money for the benefit of the people. It is therefore recommended that an effective control mechanism be put in place to ensure proper utilization of VAT allocations to improve the living standard of the grassroot people in Nasarawa state.