News Express banner Camano banner
FG lays ambush for tax defaulters •Vows to ‘make an example of a few people’

By David Malingha Doya , Sophie Mongalvy , and Antony Sguazzin on 27/01/2018

Views: 685

•Finance Minister Kemi Adeosun
•Finance Minister Kemi Adeosun

Finance Minister Kemi Adeosun plans to drag tax defaulters who do not make use of an amnesty to court as she seeks funds to plug the nation’s $25 billion infrastructure gap.

In the nine months of reprieve ending March, some penitent taxpayers have said “you got me” and cleared arrears without paying interest and or penalties, Adeosun said in an interview on Tuesday in her office in Abuja. But some have said “we wish you luck with this, catch us if you can,” she said.

Nigeria wants to double its tax to gross domestic product ratio by 2020. The current proportion of six percent is among the lowest in the world, with peers like South Africa at 26 percent, and Ghana at almost 16 percent.

Boosting tax collection will make more money available to help spur activity in an economy that contracted in 2016 due to a decline in the output of oil. The commodity makes up 10 percent of the economy but contributes about two thirds of government revenue. The state is cleaning its payroll to stop salaries to people no longer in their roles, saving about N25 billion ($69.3 million) monthly.

Basic Needs

"We are working on a litigation strategy because, in some cases, we need to go after people,” Adeosun said. “If tax amnesty closes and we have information that makes it very clear that you are evading tax, then we move on to prosecute, and make an example of a few people. We have 180 million people, we have basic needs to be met.”

While Nigeria has some of the world’s wealthiest people, including Aliko Dangote, Africa’s richest, it also has millions of poor people, mostly in the insurgent-ravaged North East. After the government started implementing biometric registration for bank accounts in an anti-corruption campaign, a whistle blower exposed $38 million of cash and other currencies in an apartment in the commercial hub of Lagos in April.

“We looked at high-net worth people, we profiled a number of them,” Adeosun said. “We looked at Panama papers. And then we compared that to people’s tax returns and the disparity is just amazing. People have foundations which they have bequeathed more money to than their tax returns can explain that they have,” she said.

More than five decades ago, before petrodollars started flowing into the country, far more adult Nigerians used to pay the so-called poll tax on assets, including cattle, mostly in the North, and crops mainly in the South. Now, out of a population of 71 million adults, there are only 14 million taxpayers, Adeosun said.

“Oil came and we just decided we didn’t need to mobilise revenue anymore,” she said. “The legacy of that is that you had a whole generation of people who have never really had to pay a proper tax and that’s reflected in our numbers.”

Text courtesy of Bloomberg.

 

 

Source News Express

Posted 27/01/2018 03:15:10 AM

 


 

CLASSIFIED ADS

 

You may also like...
Ikpeazu charges 2017 budget committee to look inwards...

Delta Governorship Tribunal reserves ruling on Okowa’s application...

Dogara: Only strong institutions can fight corruption from...

CAC to de-register 38,717 dormant companies

Umahi orders arrest of aides, traditional rulers from...

Presidency unfolds plan for conference of stakeholders, raises...

Indefinite strike looms at FMC, Umuahia

Apapa Bridge to be closed for repairs

Randy police officer, lover found dead after night...

Bayelsa ex-militants barricade road over non-payment of amnesty...

As Abians bid Mama Ikpeazu goodbye, By Ebere...

Oando crisis: Shareholders warn against cover-up, threaten to...

 

Latest News Woman gives birth to five babies after 18 years of childless marriage U.S. vows to clamp down on fraudsters Osun govt. discovers 769 civil servants working with fake, forged certificates Boko Haram kills 11 in yet another attack Rivers PDP suspends 15 LGA party chairmen indefinitely Police begin investigation into mysterious death of a Prophet in Enugu N1bn Imo Debt: Court grants leave for 17 banks to show cause not to garnishee state accounts Ndigbo have no place APC: Igbo Group Third Mainland Bridge Video: No cause for alarm — Fashola's Aide Minimum Wage: Assent is another election promise delivered, says APC Political elite have destroyed Nigeria — Sanusi Alleged bombardment of civilians: NAF investigation committee begins work

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (469,892 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (414,564 views) Shameless Genevieve Nnaji exposes breasts in public (351,946 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (301,486 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (265,687 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (238,876 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (225,793 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (207,303 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (196,283 views) 10 cars more expensive than Jets (187,888 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (178,902 views) Lagos plane crash: Journalist releases victims’ names (178,310 views)

 

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (85) Business & Economy (4,208) Business Verdict (65) Columnists (1,017) Complaints & Requests (95) Enterprise & Opportunities (208) Entertainment (606) Features (746) Global Business Monitor (343) ICT Monitor (35) International (3,327) Interview (176) Live Commentary (29) Love Matters (155) Maggie's Blog (232) News (45,110) Opinion (1,223) Pidgin (17) Politics (10,616) Religion (978) Sports (1,961) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera