Effect of Voluntary Assets and Income Declaration Scheme (VAIDS) on Economic Growth of Nigeria

Abstract

Government in recent time gave attention to tax to enhance economic growth because of the persistent dwindling proceed of oil revenue to the Nigeria economy. To address this gap, the study examined the effect of voluntary assets and income declaration scheme (VAIDs) on economic growth of Nigeria. The study employed expost facto research design using while using macro data for the period 1994 to 2019. The statistical bulletin of the central bank of Nigeria and information from National Bureau of Statistics were sourced and used alongside relevant journals. Descriptive and inferential statistics emplying multiple regressions were adopted in data analysis as the date were already validated by regulators and statutory authorities. Findings from the study revealed that VAIDs proxied by custom and excise duties, company income tax and value added tax) have significant effect on economic growth. (Adj. R2 = 0.51, F (3,21) = 9.211, p< .0.05). The study submitted that VAID was a success programme that contributed significantly to economic growth of the nation. Therefore, to increase participation and continued compliance, mechanisms must be put in place to strengthen the current tax system and also ensure participants comply with their payment of taxes even after the end of the Scheme. While the revenue generating units of the governments are encouraged to do more, the study further recommended that VAID should be a one-off amnesty programme for tax defaulters