Financial experts have expressed their support for the Federal Government’s proposal to impose additional taxes on wealthy Nigerians. They believe that this initiative is crucial for income redistribution and can significantly enhance the country’s fiscal revenues.
Dr. Muda Yusuf, the Chief Executive Officer of the Center for the Promotion of Private Enterprise, welcomed the government’s proposal, describing it as a form of progressive tax. He emphasized the importance of high-net-worth individuals paying their fair share of taxes and expressed concern over the current situation where wealthy citizens do not remit the appropriate percentages of taxes.
According to Dr. Mc-anthony Dike, former President of the Chartered Institute of Taxation of Nigeria, the government’s proposal to tax wealthy citizens is constitutional. He stated that Nigerian tax laws dictate that every individual who earns income, whether legitimately or otherwise, must pay their taxes. Dike highlighted the detrimental effects of rich Nigerians evading taxes, as it denies the government the revenue needed to provide public utilities for its citizens. He used South Africa as an example, where personal income tax constituted a significant portion of the total tax collection before the introduction of Value-Added Tax.
Godwin Anono, President of the Standard Shareholders Association of Nigeria, commended the federal government’s plan to tax wealthy Nigerians, considering it a novel initiative. Anono believes that this policy would effectively reduce economic inequality by ensuring that the elite contribute their fair share through taxes. He advised the government to leverage technology to expand the tax net and encourage eligible taxpayers to contribute.
The Federal Government has revealed its intention to tax wealthy Nigerians in order to achieve an 18% Tax-to-GDP ratio, as part of President Bola Tinubu’s fiscal policy and tax reform agenda. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, emphasized the objective of enabling the rich to pay more taxes to support the less privileged. He also suggested a reduction in the corporate income tax rate to stimulate business growth.
With experts backing the government’s proposal, it is expected that this progressive tax measure will contribute to a more equitable distribution of wealth and bolster the country’s revenue streams.