By Omololu Ogunmade in Abuja
President Muhammadu Buhari has approved the extension of the Voluntary Assets and Income Declaration Scheme (VAIDS) from the initial March 31 to June 30, 2018.
The extension, according to the president’s Special Adviser, Media, Mr. Femi Adesina, was spurred by the appeals from professional bodies and individual taxpayers.
The statement, which added that no further extension would be approved beyond June 30, disclosed that the president also approved the extension because the Ministry of Finance was convinced that the overall objective of the scheme was to ensure that increased compliance is attained, and additional revenue accrues to government coffers.
It added that a fresh executive order would be issued to give the extension a legal force.
“For a nation of people who are competitive and driven, it is not a pride that we are the lowest performer in tax to (gross domestic product) GDP, not just in Africa, but in the world.
“Nigeria’s growth needs are such that every Nigerian must do his duty to his nation, to his neighbour, and to himself.
“Hiding monies overseas, evading taxes by manipulation, and other unwholesome practices, have never developed a country, and for Nigeria to attain her true potential, these must stop,” the president was quoted as saying.
The statement also said the president urged Nigerian companies and individuals to join the government in its rebuilding mission, “and do the right thing by taking this window of extension to regularise”.
It noted that the right thing might not be convenient or comfortable, “but in the long run, we will all have a nation we can be proud of”.
It also said the president further urged tax authorities to use the extension opportunity to perfect plans to prosecute those who fail to regularise their tax status.
“VAIDS is one of the key policies being used by the Federal Government to reposition the Nigerian economy and correct inherited underdevelopment.
“The country has one of the lowest tax collection rates in the world at just 6 per cent of GDP. This was partially a function of the reliance on oil that saw us abandon the historical revenue collection systems and switch to a culture of sharing resources, rather than generating them.
“President Buhari had last year launched the Economic Recovery and Growth Plan (ERGP), and the VAIDS tax amnesty is first in the series of reforms that will transform our tax system and provide sustainable predictable funding for all tiers of government.
“Tax revenues will ensure that public infrastructure is provided, and public services are funded to improve the lives of the people.
“Taxes redistribute wealth from those who have more to those who have less, and VAIDS is one of the windows to achieve such,” the statement added.