Taxes & Tariffs | |
Taxes & Tariffs | |
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Friday, February 09, 2018 11.00AM / Ministry of Finance
The Honourable Minister of
Finance, Mrs. Kemi Adeosun, on Thursday declared that regular payment of taxes
by Nigerians was fundamental to the growth and development of the country.
Adeosun affirmed that
predictable tax revenue inflow would lead to more investment by the Federal and
State Governments in infrastructure and job and wealth creation across the
nation.
She stated this in Enugu at
the sensitization programme on the Voluntary Assets and Income Declaration
Scheme (VAIDS) hosted by the Enugu State Government.
The VAIDS programme was
attended by the Executive Governor of Enugu State, Rt. Hon. Ifeanyi Ugwuanyi;
Deputy Governor, Hon. (Mrs.) Cecilia Ezeilo; Speaker of Enugu State House of
Assembly, Hon. Edward Uchenna Ubosi; Enugu State Commissioner of Finance, Hon.
Eucharia Uche Offor, members of the State Executive Council, members of the
Enugu State House of Assembly, and traditional rulers, among others.
The Minister remarked that
Nigeria had a poor scorecard in tax payment, saying that only 14 million people
pay tax out of about 70 million economically active people.
Adeosun 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 systems 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.
She assured that the Federal
Government would avoid the boom and bust cycles by aligning with nations that
have predictable revenues in order to ensure progressive improvements in the
quality of life for the citizens.
She recalled that after
years of neglect, the Federal Government has revived Federal Road projects
including the 9th Mile - Ngwo to Milken Hill to New Market.
“Indeed, the President
Muhammadu Buhari Administration has completely transformed road expenditure. In
2015, the figure was N19 billion for the whole nation, in 2016 we increased it
to N220 billion and we plan to do much more.
“This Government has
recognised that infrastructure is the key to creating jobs, growth and wealth.
We have already released N1.2 trillion in capital so far for the 2017 Budget,
which commenced in June 2017 and most of this was applied to roads, bridges,
rail, power, our airports and other key infrastructural projects.
“How will this capital
investment translate to jobs? Not only do we get the direct jobs with
construction companies and others but there is indirect opportunity for
suppliers of building materials and aggregates.
“In the longer-term,
efficient infrastructure reduces the costs of doing business and makes many
ventures viable and profitable. We are seeing young entrepreneurs springing up
to replace imported items with locally made goods of the highest standards, we are
seeing export of foods and finished goods into international markets,” Adeosun
said.
Speaking on the VAIDS, the
Minister disclosed the scheme was initiated to provide opportunity for tax
payers to regularise their tax status relating to previous tax periods.
She maintained that tax
defaulters who failed to take advantage of the VAIDS programme would be
subjected to tax investigations as well as made to face criminal prosecution
for tax offences.
The Executive Governor of
Enugu State, Rt. Hon. Ifeanyi Ugwuanyi, lauded President Muhammadu Buhari and
the Minister of Finance for their “resourcefulness and dynamism” in the
establishment of VAIDS.
He enjoined all tax payers
to take advantage of the VAIDS to regularise their tax liability.
The Governor appealed to the
President and the Minister to prevail on federal agencies in Enugu State to pay
their taxes.
He disclosed that the State
Government was committed to growing its Internally Generated Revenue (IGR).
The IGR, according to him,
has increased from N14 billion in 2016 to N22 billion in 2017.
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