FG Blinks As PMB Okays June 30 New VAIDS Deadline
BY EDMOND ODOK, ABUJA – Bowing to pressure from stakeholders, President Muhammadu Buhari has approved the extension of the Voluntary Assets and Income Declaration Scheme (VAIDS) to June 30, 2018.
The new deadline comes on the heels of appeals by professional bodies and individual taxpayers at the expiration of the initial March 31, 2018 date.
A statement from the Presidency however stated that no further extension of time will be considered after June 30.
According to the statement, the new date was also given, based on the Federal Ministry of Finance’s conviction that the overall objective to increase compliance will be attained, and additional revenue will accrue to the government coffers.
In addition, a fresh Executive Order will be made by the President to give legal backing to the new timeline.
Signed by Femi Adesina, Special Adviser to the President on Media and Publicity, the statement said, “For a nation of people, who are competitive and driven; it is not a pride that we are the lowest performer in tax to 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.”
He charged Nigerian companies and individuals to join government in the rebuilding mission, “and do the right thing by taking this window of extension to regularize.”
The President further stated that the right thing may not be convenient or comfortable, “but in the long run, we will all have a nation we can be proud of.”
He also urged tax authorities to use this new window to perfect plans towards prosecuting those who fail to regularize their tax status.
As one of the key policy elements, the Federal Government is deploying VAIDS to reposition the Nigerian economy and correct inherent underdevelopment in the polity.
At just six (6) per cent of the Gross Domestic Products (GDP), Nigeria currently has one of the lowest tax collection rates globally. The unhealthy development is partially a function of the nation’s over-reliance on oil that led to the abandonment of the historical revenue collection systems and switch to a culture of sharing resources, rather than generating them.
The Economic Recovery and Growth Plan (ERGP) was launched by the President last year launched with the VAIDS tax amnesty as the leading light in the series of reforms meant to transform Nigeria’s tax system and provide sustainable predictable funding for all tiers of government.
Improved tax revenues will ensure public infrastructure is provided, while public services are funded to improve the lives of the people.
In the same way, taxes help re-distribute wealth from those who have more to those who have less, and VAIDS presents one of such windows to achieve this objective.
