Acting President Yemi Osinbajo signs the Voluntary Assets and Income Declaration Scheme (VAIDS) in Abuja on Thursday, June 29, 2017, here are the 9 important takeaways from Launch of the VAIDS.
The Voluntary Assets and Income Declaration Scheme (VAIDS) will last from July 1, 2017 to March 31, 2018.
VAIDS will be supported by an Executive Order that was signed into law by Acting President Yemi Osinbajo today 29 June, 2017.
For the last 15 months, a high-level team has been working with the Federal Ministry of Finance on Project Lighthouse. This project entailed gathering data from a wide range of sources to understand the degree of tax compliance in Nigeria.
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 4% comply by paying willingly.
Only 214 Nigerians pay 20 million Naira or more in taxes annually.All of them are based in Lagos State. Fewer than 1,000 pay N10 million Naira or more in taxes. All but two of these people are based in Lagos State.
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.
The Federal Government has declared every Thursday from today June 29 2017, #TaxThursday. This means that Thursdays have henceforth been set aside for tax enlightenment and awareness, and to welcome new taxpayers.
Nigeria is now party to the new global standard on Automatic Exchange of Information (AEOI), which kicks off 2018.
Upon the expiration of VAIDS, Federal Government will commence criminal prosecution of tax evaders who refused to take advantage of the income declaration scheme.