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FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion - Business - Nairaland

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FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by postbox: 6:56pm On Dec 18, 2017
For a nation of nearly 200 million people, not many Nigerians pay taxes. Indeed, as of May 2017, only 14 million—or one in five—of Nigeria’s estimated 70 million economically active citizens were paying taxes. As such, Nigeria’s government has typically earned much less than it could have from taxes.

Back in June, Nigeria’s finance minister revealed only 214 people in the country pay more than 20 million naira ($55,600) in taxes.

Like several other African countries, Nigeria has seen its economy slow down due to the drop off in commodity prices over the last two years. Africa’s largest economy is under pressure from multilateral organizations like IMF and World Bank to diversify its revenue base away from an over-reliance on oil and gas export revenue. The IMF suggests “better balancing income taxes and indirect taxes, and broadening the tax base to improve the resilience of tax revenues.”

When it comes to taxes in Nigeria, the problem is less about raising taxes but more of a focus on improving collection rates. This is easier said than done in an economy which is dominated by its cash-led informal sector.

Earlier this year, as part of a planned increased tax collection drive, the government introduced a Voluntary Assets and Income Declaration Scheme (VAIDS) to try to plug the gap. The idea of the scheme was simple: within an amnesty period (July 2017 to March 2018), the government would allow anyone who hadn’t paid taxes or had under-declared their income to pay what they owe without being prosecuted or paying penalties. After the deadline, tax evaders could face criminal prosecution.

The hope for the tax amnesty period was to widen the tax base by registering more individuals and businesses that previously didn’t pay taxes and, so far, it appears to be paying off. Babatunde Fowler, head of Nigeria’s internal revenue service, says the country has collected nearly $47 million from former tax evaders through the scheme in the past six months. Increasing its tax base means Nigeria can also improve its tax to GDP ratio which currently ranks among the lowest globally.

Beyond an amnesty program, Nigeria could also remarkably boost its tax base if the government can crack how to tax its vast informal sector. For much informal employment, taxes are typically deducted from monthly salaries making tax evasion more tricky. But for many local businesses owners or artisans, with the government unable to track their income, tax evasion is possible and likely rampant.

In the short-term, generating more revenue via taxes is essential to Nigeria as the government is looking to finance a record budget in 2018.Even though oil production, Nigeria’s primary source of revenue, is making a rebound, it remains around 200,000 barrels per day short of the oil production benchmark needed to fund the record budget.

SOURCE: https://brandspurng.com/nigeria-is-getting-more-people-to-pay-taxes-by-not-punishing-them-for-tax-evasion/

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Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by afbstrategies: 6:59pm On Dec 18, 2017
And what happens when the taxes go into the pockets of thieves and people do not see results? undecided

11 Likes

Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by Mrjo(m): 7:02pm On Dec 18, 2017
So u want us to give them money to keep for their future generation abi? Bros, u be witch?

5 Likes

Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by BrandSpurNG: 6:58am On Dec 19, 2017
Interesting...
Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by NwaAmaikpe: 7:26am On Dec 19, 2017
shocked


Such a dull strategy.
Every crime must be punished.

6 Likes 1 Share

Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by Macgreat(m): 7:27am On Dec 19, 2017
Naija is getting better

2 Likes 1 Share

Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by Osucoward: 7:27am On Dec 19, 2017
Huh?
I don’t get this logic, but oh well.

Taxes are required for any covilization’s development. It has always been there and it will continue to be there.

Unfortunately for Nigerians, Information in how our taxes are being used (transparency) or even physical evidence (maintenance and infrastructure) is not public knowledge. The overburden the population with taxes (not many Nigerians pay taxes btw) to enrich their greedy lifestyles (Dino).

4 Likes 1 Share

Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by deboysben(m): 7:31am On Dec 19, 2017
The #65 we pay as bank charge to government is what?
Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by admissionrunz: 7:32am On Dec 19, 2017
indirectly or directly.... we all pay for taxes
Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by mrvitalis(m): 7:32am On Dec 19, 2017
Our tax to gdp ratio shows we are not ready for development

1 Like

Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by WunderGist: 7:34am On Dec 19, 2017
No yawa
Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by Kingspin(m): 7:34am On Dec 19, 2017
Paying tax is never the problem. The question is are you taxing to kill the people or just generate revenue only while social structures has collapse. Same way they keep increasing electricity bill without increasing the light... It is a backyard policy. Do the first thing first.. Why Government be shouting about tax and forget infrastructures and good policies?. This is a devil's gift...

1 Like

Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by Nedumadrid(m): 7:36am On Dec 19, 2017
How do you expect an unemployed man or a peasant farmer to pay tax.
If I were the President, I will decree that people should pay tax according to the type of cars they have.Transporters excluded
Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by BetaThings: 7:39am On Dec 19, 2017
afbstrategies:
And what happens when the taxes go into the pockets of thieves and people do not see results?

There is a law for that

1 Like

Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by Kingspin(m): 7:42am On Dec 19, 2017
Are we taxing to kill the people or bring changes?
Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by Olawalesadiq(m): 7:44am On Dec 19, 2017
who that one Epp..
Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by MrBONE2(m): 7:44am On Dec 19, 2017
Kingspin:
Paying tax is never the problem
But not using the tax judiciously by polithiefcians and executhievies is the main problem heregrin

2 Likes

Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by IAmSkinny: 7:45am On Dec 19, 2017
Ahh, this people funny o. Why should I pay tax? I provide water for myself, I provide security for myself, in fact, every single thing that the government should do I am already doing it. The government does nothing for me and they want me to pay one silly tax.
.
I don't even have job, where I wan get money from pay tax? Ohhh, I shall rob the UBA Bank in my hood and pay the government tax.
*Give us perfect roads
*Give us quality education at an affordable price
*Give us electricity
*Give us water and standard health care centers
*Give us security and an unbiased judicial system
*We would like to know how much our senators, president, Governors and all public servants earn. That way, we can easily tell when these public servants embezzle money or when public funds is not put into proper use

2 Likes 1 Share

Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by EmoBoy(m): 7:48am On Dec 19, 2017
I wont pay tax

1 Like

Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by Lionhearted: 7:54am On Dec 19, 2017
Nedumadrid:
How do you expect an unemployed man or a peasant farmer to pay tax.
If I were the President, I will decree that people should pay tax according to the type of cars they have.Transporters excluded
dont be surprised that all car Owners will become transporter.

1 Like

Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by AnodaIT(m): 7:57am On Dec 19, 2017
How can I pay tax when the person responsible for giving me information about how my tax is being used said that he does not owe me anything explanation

Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by Kingspin(m): 8:09am On Dec 19, 2017
MrBONE2:
But not using the tax judiciously by polithiefcians and executhievies is the main problem heregrin
You are right! The same way they depend on oil, seaports in "Lagos" is same way they wanna go with taxation... NEPA bill has increased to over 200% but light refuse to increase. You know we are not good at doing anything well in this country..

1 Like

Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by Kingspin(m): 8:10am On Dec 19, 2017
MrBONE2:
But not using the tax judiciously by polithiefcians and executhievies is the main problem heregrin
You are right! The same way they depend on oil, seaports in "Lagos" is same way they wanna go with taxation... NEPA bill has increased to over 200% but light refuse to increase in our homes. You know we are not good at doing anything well in this country..
Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by damola1: 8:11am On Dec 19, 2017
The problem is not paying.

But how can someone be using tax payers money for £1000 hanger presidential jet daily.

Look at senator Dino. What is his job besides feeding fat on taxes.

Who want to bet it with me. Senator Bruce whose company couldn’t pay 11B debt after his tenure will be able to buy 3 private jets

Let them block the leakages. The masses are suffering enough.

70% for car duty. Haba. Which tax is bigger than that. You buy a $1k junk 15 year old car. Yet you pay almost 400k as duty. Who is deceiving you that is the informal sector is not paying tax.
Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by Rick9(m): 8:52am On Dec 19, 2017
Provide the basic amenities, the right infrastructure and an enabling & conducive atmosphere for business to thrive and the citizens would gladly pay their taxes,

You don't expect them to pay taxes when they don't have the means to pay.
Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by 2undeajigs: 8:55am On Dec 19, 2017
Paying taxes to a functioning government is ok.
When you see your taxes working for you as a citizen (eg. Basic services like fire services, healthcare, effective policing, social welfare, etc ), that’s something to be proud of.

But Paying taxes to a government that isn't working for you,
That will not work for you,
That is morally incapable of paying for you,
A government likes that of NIGERIA demanding taxes from you so they can continue funding there excesses.

That’s slavery.
Funding a cartel that feel a certain percentage of your income is there right to keep maintain their lavish lifestyles Is theft

Our legendary leaders like Dino , fayose et’al will surely endorse this
Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by Sagay212: 9:11am On Dec 19, 2017
God punish FG
Re: FG Is Getting More People To Pay Taxes By Not Punishing Them For Tax Evasion by chloride6: 1:36pm On Dec 19, 2017
Nedumadrid:
How do you expect an unemployed man or a peasant farmer to pay tax.
If I were the President, I will decree that people should pay tax according to the type of cars they have.Transporters excluded

The owner would have paid taxes at the border for the cars remember?

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