1.1 BACKGROUND OF THE STUDY
All economies, whether developed or developing require some degree of government intervention with a view to facilitating economic growth and development in their domains. This is particularly so as certain essential goods and services such as education, security, electricity, water and health facilities among others are mostly provided by the government. However, in providing these goods and services government has to source funds (revenue) from various sources including taxation, Ogundele (1996). New form of taxes are selectively being introduced particularly by the developing countries so as to boost their revenue earning capacity with the aim of ensuring rapid economic growth and development of their countries. The Value Added Tax (VAT) is one of such taxes recently initiated by governments to raise revenue for smooth government operations.