It will be difficult for the rich to avoid paying taxes given the plans by the government to widen the tax net and capture all those who should be paying, Finance Minister Kemi Adeosun said yesterday in Enugu.
She expressed regret that no fewer than 56 million Nigerians, who should be paying taxes, are not paying.
Mrs Adeosun spoke in Enugu during a sensitisation programme on the Voluntary Assets and Income Declaration Scheme (VAIDS). It was hosted by the Enugu State Government.
The minister said huge sums of money had been moved out of Nigeria without the owners paying any tax. She said such people would be fished out.
”The good news for government, which is bad news for the tax evaders, is that globally, nations have agreed to share data under the Automatic Exchange of Information. This means that sitting at our desks in Abuja, we are getting information about assets that the owners thought were well hidden from the tax authorities.
“As you know, Nigerians are entitled to keep their wealth anywhere in the world, including under their mattress, but what the law requires is that they pay tax on their income as they earn it,” Mrs Adeosun said.
The event was attended by Enugu State Governor Ifeanyi Ugwuanyi; Deputy Governor Cecilia Ezeilo; Speaker. Edward Uchenna Ubosi; Commissioner for Finance Eucharia Uche Offor, members of the State Executive Council, members of the House of Assembly and traditional rulers, among others.
The minister said: “Payment of taxes is a fundamental requirement for our growth story. Nigeria has a very poor scorecard in tax payment. When oil came, we abandoned the old system of tax collection that provided most of our infrastructure since colonial days.
”Currently, we have just 14 million tax payers out of 70 million who are economically active. So, many people who should be paying are not paying anything. It is the development of taxes that will help the states and the Federal Government to achieve their true potentials.”
She explained that payment of taxes had become imperative to avoid the recent collapse in oil prices and the resultant recession.
