The Acting President of Nigeria, Yemi Osinbajo on Thursday morning signed an executive order backing the implementation of the voluntary assets and income declaration scheme (VAIDS).
The executive order which was designed by the ministry of finance was signed at the state house banquet hall in Abuja, to ensure that the scheme is backed by the full force of the law, leads to the payment of taxes and punish offenders after the nine-month grace period.
The acting president stated that: “When people pay taxes they pay more attention to what Govt is doing. There’s a greater level of political and social consciousness.”
“Taxes not only about boosting government revenues. When people pay taxes they hold government to account more. Only 214 Nigerians pay taxes of N20 million or more each year. A personal tax bill of N20 million implies personal income of N80 million.
“All of these 214 Nigerians who pay N20m or more in taxes annually are to be found in Lagos State. I’m sure in this room (and I’m not looking at anyone), there are another 214 people who earn more than N80 million annually.
“Tax evasion not limited only to wealthy Nigerians. Also not limited to individuals. Many companies maintain 2-3 sets of books.”
He concluded by saying: “Starting today, every Thursday will be tax Thursday across Nigeria, for tax enlightenment and awareness. Today I declare that paying Taxes is our duty to our nation, and I declare the Voluntary Assets and Income Declaration Scheme open.”
Meanwhile, the ministry of finance, says the scheme will offer incentives to tax evaders and the tax amnesty will run for the next nine months, effective from July 1, 2017.
From January 1, 2017 to March 31, 2018 there will only be “waiver of penalty, no prosecution of tax offences and no tax audit”.
“We are doing two things today: we are sending a clear signal to tax evaders in our country that the party is over,” Kemi Adeosun, the minister of finance, said.
“We’re also calling on these evaders to do the right thing and rapidly come clean for the good of their country or face the full consequences of the law. This window of opportunity will never be offered again.
“The proceeds of this scheme will not disappear. They will be invested in key infrastructure projects and for clearance of pension arrears.”
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[…] June, Acting President Yemi Osibanjo had signed an executive order on voluntary assets declarations, saying tax payment is a duty to the […]