Article Subject

The impact of value added tax on lease service consumption is variously felt among lessors, lessees and lease financers across the globe sequel to the variance in environments of operation. This accounts for variation in the acceptability of leasing and its marketing as contributor to macro economic development through growth. This work addressed these controversies as it compared the incidence sales tax, as an alternative to value added tax; related value added tax operations in Nigeria to Ghana and identified strategies to the re-positioning of value added tax in Nigeria. As a survey based exercise, the work relied on the use of questionnaire and interviews with the records of Equipment Leasing Association of Nigeria, those of Ghana and Afrolease as complementary and supplementary sources of data. Tools of analyses include ‘t’ test statistics for difference of means, Analysis of Variance (ANOVA), Pearson correlation coefficient ‘R’; Co-efficient of determination R2 and the Spearman’s rank correlation co-efficient, given the ranking of variables using the different scales as weighted based on the modified likert ranking scale. Common observations include the existence of insignificant difference between the impact of sales tax and value added tax on the consumption of lease services, Nigeria compared to Ghana has poor attitude to value added tax administration hence the poor level of lease service acceptance in Nigeria, Rebate in value added tax rate and efficiency in tax accounting education for cost minimization have the potency of addressing the supposed poor attitude of Nigerians to lease service consumption.  Recommended thus are, the re-structuring of the administration and policies of value added tax, for the recognition of the differences in characteristics of the different segments of the lease ticket markets, emphasy on lease e-transaction for fraud control and the improvement in the level of value added tax accounting education for cost management.

Value added tax
sales tax; Nigeria
tax Rebate and tax accounting education
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