Abstract

The study examined the effect of value added tax on corporate performance in International Breweries PLC Nigeria. The specific objectives were: evaluate the effect of value-added tax (VAT) on profit for the year (PY) and return on capital employed (ROCE). This study employed quantitative research design. Study Area was International Breweries PLC Nigeria covering the period of 2012-2022. The geographical area of the study was Nigeria. The data used in this study were sourced from annual reports and statement of accounts of the selected organization under study. The choice for only manufacturing firms in South East Nigeria was because of homogeneity nature of organization. The data analytical techniques were descriptive statistics, correlation matrix and Ordinary Least Squares (GLS). The empirical results show that value added tax (VAT) has negative and significant effect on profit for the year (PY) in International Breweries PLC Nigeria (t-value -4.4680; P-value; 0.001575 < 0.05) and value added tax (VAT) has negative and significant effect on return on capital employed (ROCE) in International Breweries PLC Nigeria (t-value -6.5494; P-value; 0.0001 < 0.05). The recommends that government should increase the rate of value added tax in Nigeria so that the funds realized from value added tax will be expended on the provision of social and infrastructural facilities which ultimately will boost the economy by way of enhance the level of investment (encourage investors) which invariably create employment opportunity in the country.