FG targets $1bn revenue under new tax initiative

Ifeanyi Onuba,Abuja

The Federal Government is targeting to raise additional revenue of $1bn through a new tax awareness scheme known as Voluntary Asset and Income Declaration Scheme.

The new tax initiative to be inaugurated by Acting President Yemi Osinbajo, next week Thursday, is targeted at increasing tax awareness and compliance, as well as granting taxpayers a time-limited opportunity to regularise their tax status without penalty.

The development was confirmed by a statement issued by the Ministry of Finance on Friday night.

It said the new initiative to be jointly executed by the federal and state governments, would concentrate on the obligations of all Nigerian companies and citizens to pay their taxes, wherever their income is earned, wherever they reside and no matter how rich they are.

It said, “In line with other proven, international schemes, recent similar schemes in 2016 have been implemented successfully in India, Indonesia and South Africa. VAIDS will bring Nigeria in line with international best practice and contribute to worldwide efforts to tackle corruption.

“Much needed funds will be generated and transparently invested – anticipated funds to be raised are at least $1bn, which will reduce Nigeria’s borrowing needs, allow investment in vital infrastructure and spur development.”

It quoted the Minister of Finance, Mrs. Kemi Adeosun, to have said the move became imperative as the government had inherited a situation of huge infrastructure deficit.

She said, “During the last eight years, Nigeria has failed to reduce its debt levels despite high oil prices and nominal GDP growth. We have inherited a situation where our debt and underdevelopment are getting worse, not better. This cannot continue.

“Neither can the behaviour of some of our richest citizens and multinationals operating in Nigeria – who seem to consider paying tax to be optional. From 2018, international law will make it easier than ever to track these evaders down and punish them.

“This scheme is in line with similar initiatives launched during 2016 in India, Indonesia and South Africa. We know they work, we know it’s the right thing to do and the Treasury desperately needs the money.

“Finally, the proceeds of this scheme will not disappear. We will provide regular updates on the funds collected to date, and how those funds are being put to very transparent use.”

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