Abstract

This paper on the impact of value added tax (VAT) on economic and human developments of emerging Nations from 2001 to 2009 as VAT is becoming important source of revenue. Our scope of study centers on Adamawa State of Nigeria. Data were collected from both primary and secondary sources. Regression, discriminant analysis and ANOVA were used in testing the hypotheses. We found out that VAT allocations alone accounts for 91.2% of the variations in expenditure pattern of Adamawa State from and that VAT allocations to the State within the said periods were very significant. The facts obtained via secondary data attest to a very significant VAT impact on economic and human development of the State from 2001 to 2009 but data obtained from primary sources suggest minimum VAT impacts. We recommend for further research to be carried out on the spread of VAT impact on various aspects of economic and human developments among the administrative areas and that the governance of Adamawa State and other States of developing countries to ensure that revenue allocations especially VAT should not only have impact but should be perceived to impact positively on the economic and human developments by the citizens of that state.

Key words: Value added tax (VAT), economic and human development, emerging nations.