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    FG Initiates Scheme To Enhance Tax Contribution To GDP


    economy, tax

     

    The Federal Government has unfolded plans to raise the number of people in the tax net in relation to the Gross Domestic Product (GDP) in the country from the lowly six per cent to 15 per cent, in to buoy the nation’s non-oil revenue generation profile.

    This initiative was disclosed yesterday by Mrs. Kemi Adeosun, Minister of Finance, during an interactive session hosted by PwC Nigeria in Lagos, for executives and business owners on the Voluntary Assets and Income Declaration Scheme (VAIDS). The programme was introduced by the Federal Government, in collaboration with all 36 states governments. PwC Nigeria

    Specifically, according to the minister, VAIDS, which was officially launched by the Acting President, Prof. Yemi Osinbajo, on June 29 and supported by an Executive Order, is expected to increase Nigeria’s tax to GDP ratio from the current six per cent to between 10 per cent and 15 per cent, broaden the national tax base, curb tax evasion and discourage illicit financial flows.

    Besides, it is expected to improve good governance, guarantee a better quality of life, encourage robust national planning and increase the size of the formal economy.

    Adeosun pointed out that at six per cent, Nigeria’s tax compliance rate was low, stating that most developed nations were between 30 per cent and 32 per cent.

    According to her, “prosperous nations have high levels of tax compliance whilst poor nations have low rates. Nigeria aspires to be a prosperous nation, so this problem must be solved.”

    The scheme, which commenced on July 1, 2017, will last for a period of nine months, and will be implemented by the Federal inland Revenue Service (FIRS) in collaboration with all 36 states Internal inland Revenue Services and FCT IRS.

    Mr. Taiwo Oyedele, Head of Tax at PwC Nigeria, said: “Paying taxes is not particularly easy anywhere in the world for anyone who has expended time, energy and other resources to earn the income. However, it is necessary for there to be an organised society for the benefit of all.”

    The event also had in attendance the Executive Chairman of the Federal Inland Revenue Service, Mr. Tunde Fowler, the Chairman of the Lagos Internal Revenue Service, Mr. Ayodele Subair and many top level executives, regulators and entrepreneurs.

    The post appeared first on Independent Newspapers .

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