According a World Bank ranking, Nigeria’s tax-to-GDP ratio is one of the lowest in the world at 6 per cent; even by African countries performance.
Whilst the rich evade paying taxes, the poor are the hardest hit. “Tax evasion leaves an unfair burden of payment on those who can afford it least – Nigeria’s poorest people” Minister of Finance, Minster Kemi Adesoun said recently.
Thus, the government is concerned about reversing the trend and make the rich pay their fair share of taxes. When this occurs, government hopes, its revenue base will be deepened, its income stream a bit diversified, more revenue for infrastructure will be generated and the economy would work better.
As a part of its tax compliance drive, the FG last year launched the Voluntary Assets and Income Declaration Scheme (VAIDS), a time-limited opportunity for taxpayers to regularize their tax status relating to previous tax periods.
VAIDS, an initiative of