Acting President Yemi Osinbajo, on Thursday declared open the Voluntary Assets and Income Declaration Scheme (VAIDS). An executive order has also been signed backing the scheme
In his speech at the declaration of the scheme, he said “I declare that paying Taxes is our duty to our nation, and I declare the Voluntary Assets and Income Declaration Scheme open.”
However, there are nine takeaways from launching of the scheme, which was held at the State House, Abuja.
He stated as follows; “The Voluntary Assets and Income Declaration Scheme (VAIDS) will last from July 1, 2017 to March 31, 2018, while it will be supported by an executive order that was signed into law today.
“For the last 15 months, a high-level team has been working with the Ministry of Finance on Project Light House, therefore, the project will entailed gather ring of data from a wide range of sources to understand the degree of tax compliance in Nigeria” Osinbajo said.
According to him on tax payment by Nigerians, Nigeria has a total of 69.9 million economically- active individuals but only 14 million of such people are tax payers- 96% of them have their taxes automatically deducted through the Pay As You Earn (PAYE) system and four percent comply by paying willingly.
Adding that, each year, N20 million is generated in tax from only 214 Nigerians, while all the 214 are based in Lagos State.
Osinbajo, also said that recent N-Power scheme is in the process of employing 7,500 community officers.
“The Federal Ministry of Finance, under the N- Power scheme is in the process of employing 7,500 Community Tax Liaison Officers (CTLOs), who will be trained to educate and sensitize citizens on the importance of paying tax and Nigeria’s tax system in general”
Adding that every Thursday has now been declared by the Federal Government a time set aside for tax enlightenment and awareness and also to welcome new taxpayers. The tax enlightenment and awareness program had commenced today and will elapsed till the next One year.
He also said, Nigeria is now party to the new global standard on Automatic Exchange of Information (AEOI), which kicks off 2018, while upon the expiration of VAIDS, Federal Government will commence criminal prosecution of tax evaders who refused to take advantage of the income declaration scheme.
