Acting
President Yemi Osinbajo yesterday signed an executive order that makes payment
of taxes mandatory for Nigerians at all levels.
The
executive order signed during the official launch of the Voluntary Assets and
Income Declaration Scheme (VAIDS) in Abuja is expected to also facilitate tax
collection by revenue generating agencies in the country.
The Acting
President explained that taxation has always been the basis of raising funds
around the world, but lamented that majority of Nigerians do not pay tax, a
situation he said “is at variance with our economy as we are estimating that
almost 70 million Nigerians are economically active. This means that just 20
per cent of people involved in any form of business or the other registered and
are paying taxes.”
“Despite
having some of Africa’s wealthiest people whose lifestyles are the subject of
global discussion, only 214 Nigerians pay taxes of N20 million or more each
year. A personal tax of N20 million implies an income of N80 million a year
with majority of them based in Lagos State.
“We must
change our way of paying tax. Tax evasion is not just a civil matter but is
also a crime.”
He said when
people pay taxes, they develop the attitude of paying attention to what
government does with their money.
Osinbajo
lamented that the current situation in the country was that a greater
percentage of Nigerians paying taxes were those engaged in formal employment.
The acting
president declared that every Thursday of the week, beginning from yesterday
would be observed as ‘Tax Day’ in the next one year.
He explained
that VAIDS, which would be operated initially from July 1, 2017 to March 31,
2018 would be supported by the executive order and will offer a once in a
lifetime opportunity to those in default to regularise their tax affairs.
Osinbajo who
assured Nigerians that funds paid to government through taxes would be use to
provide services, also encouraged Nigerians to come up and take the commitment
of government seriously.
Osinbajo
said it was this background that informed government’s decision to recruit and
train 7,500 Community Tax Liaison Officers to go into every community and
educate Nigerians on the tax system and the duty it imposes on every
economically active citizen.
He charged
state governments to organize sensitisation events that would raise the level
of awareness of the tax system and result in massive enrolment of taxpayers.
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