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 order to prop up the nation’s non-oil revenue generation profile.
This initiative was disclosed yesterday by 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.