By Abdullahi M. Gulloma Abuja
Acting President, Prof. Yemi Osinbajo, has signed an Executive Order to support the Voluntary Asset and Income Declaration Scheme (VAIDS) introduced by the Federal Inland Revenue Service (FIRS). Speaking at the offi cial launch of VAIDS at the State House Conference Centre yesterday in Abuja, Osinbajo said the new initiative was targeted at increasing tax awareness and compliance. According to him, the initiative also grants tax payers a time-limited opportunity to regularise their tax status without penalty. Osinbajo also declared every Th ursday “Tax Th ursday” to enable the FIRS and state governments organise sensitisation events that would raise the level of awareness of the tax system for massive enrolment of tax payers.
He said government had set a target of at least four million new tax payers to be enrolled in order to increase the level of payment amongst the 14 million already registered tax payers. Th e Acting President explained that the Voluntary Asset and Income Declaration Scheme would be jointly executed by the federal and state governments in order to ensure that “all Nigerian citizens and companies pay their taxes wherever their income is earned, wherever they reside and no matter how rich they are.”
He said progress had been made in taxing those in paid employments, but expressed concern that high net worth Nigerians, self-employed persons, professionals and companies evaded full tax payments due to the inability of tax authorities to access their true incomes. He said: “According to FIRS, the total number of tax payers in Nigeria is just 14 million and 96 per cent of this number has their taxes deducted at source from their under the PAYE system, while just four per cent complies under direct assessment.
“So, a vast majority of Nigerians do not pay taxes and this is at variance with our economy as we are estimating that almost 70 million Nigerians are economically active. Th is means that just 20 per cent of people involved in any form of business or the other are registered and paying taxes. “Despite having some of Africa’s wealthiest people whose lifestyles are the subjects 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, I am not looking at anyone in particular (in the hall).” Continuing, he said: “Th at group of 214 excludes many names and, of course, you know that there are many people who can pay way over N20 million. Another worrying observation is that the 214 who, of course, shall remain nameless are all based in Lagos state. “Th ere is another fi gure that talks about those paying over N10 million and that will come to about 914 or thereabouts and of that number all except two are from Lagos and the other two are from Ogun state my state.” To ensure compliance, the Acting President said government had recruited 7, 500 Community Tax Liaison Offi cers who would go into every community to educate people on the tax system and the duty it imposed on every economically active citizen.
