The federal government has so far recovered some N30billion from both individuals and corporates under its tax amnesty programme- the Voluntary Assets and Income Declaration Scheme (VAIDS).
Announcing this in Abuja on Wednesday, Tunde Fowler, Chairman, Federal Inland Revenue Service (FIRS) said while the FIRS collected about 90 percent of the total sum, the remaining 10 percent came from the states.
Fowler said beyond the financial returns, the scheme has significantly helped promote voluntary tax compliance in the country still struggling with low tax revenues.
“One of outcomes of the scheme, whether directly or indirectly is the growth of the national taxpayer base from under 14 million pre 2016 to over 19 million in 2018,” he said at a VAIDS workshop for tax authorities.
VAIDS is an initially scheduled nine-month programme for tax payers to regularize their tax status and in exchange for fully and honestly declared undisclosed assets and income, get pardon and will not be made pay overdue interest and penalties.
The federal government hopes it would help it rev up revenue from tax, especially with the country’s Tax to GDP said to stand at 6 percent, about the lowest on the continent and even globally, considering the huge population.
President Buhari, however, extended the programme to June 30 following appeals by yet-to-comply tax debtors.
Fowler expressed confidence that growth of the national taxpayer base would improve the country’s tax revenue to GDP ratio when the official percentage for 2017 have been released.
According to him, VAIDS goes beyond immediate gains. “In recent time, the incidence of illicit financial flows, aggressive tax avoidance and outright tax evasion have come into the front burner.”
“The international community, recognising the need to present a united front against this trend, which is a limiting factor in the quest towards exploiting the inherent potentials of tax as a viable alternative to sustainable revenue generation, especially for developing and emerging economies, has designed and is implementing a number of initiatives that will leave no hiding place for the tax payer.”
Fowler was hopeful that as these international collaborative efforts begin to gain mileage, coupled with the efforts at ensuring compliance with the statutory tax obligations at the domestic front, the country would begin to see increased revenues.
He also mentioned that the National Tax Policy implementation committee was proposing a National Tax Day, a special day to be set aside every year for awareness and sensitization on tax matters.
Onyinye Nwachukwu, Abuja
