Economics experts say that the tax-to-GDP ratio in Nigeria is currently a little over 6%. A very small ration when you consider the fact that the West African nation has an estimated population of 69.9 million people who are active economically. These statistics were established back in May 2017.
Its neighbor, Ghana has a tax-to-GDP ratio of 16%, but with a significantly less population actively participating in the economic sector. Other countries are as follows.
In a nutshell, there are a lot of tax evaders in Nigeria. So many in fact that if the Federal Government decided to carry out a crackdown, the economy might come to a standstill. But that is not to say the government will not come after tax evaders. No, rather it will come softly after them but firmly at the same time.
In July 2017, the Federal Inland Revenue Service (FIRS) launched the Voluntary Asset and Income Declaration Scheme (VAIDS). A year-long program that will give tax evaders an amnesty to come forward to the taxman and come up with a schedule for payment of due taxes. During that period, there will be …read more