CITN: Why Nigerians Don't Pay Tax

 

The Chattered Institute of Taxation of Nigeria (CITN) on Tuesday in Enugu lamented that Nigerians lost interest in tax payments because money realised from it had continuously gone into private pockets.

  The Institute noted that with tax compliance of six percent, Nigeria remains the lowest in payment of taxes in the world, a development it noted would have adverse effect on the counyt's economy. 

The CITN President, Dr Cyril Ikemefuna Ede, spoke at a training workshop for professionals, advising clients on participation in the Voluntary Assets and Income Declaration Scheme (VAIDS), organised by the federal Ministry of Finance in Enugu.

Ede said the effort of the federal government to ensure that taxes are paid in the country would only be realisable if money collected from it was used in the provision of amenities and improvement in the wellbeing of the people.

He said the low compliance rate prompted the establishment of the VAIDS to sensitise Nigerians and enable them regularise their tax status.

The scheme which runs for nine months from July 1, 2017, to March 31, 2018, will benefit tax payers who use the period to declare previously undisclosed assets and income as they not are charged interest and penalties and would be free from criminal prosecution for tax offences.

  “About six percent is paying tax at the moment. People are not seeing the effect of paying tax, and because of that they became reluctant to pay. Also, the general environment in Nigeria-you see politicians having the whole money and this is the money coming to government from taxes we pay-so some people are not being encouraged to pay.

“I am sure that if the government turns out to do things that are good, people will start paying taxes. 

“Government must make sure that the ones they pay are utilised and people have the effect of the taxes. They pay 51 percent in Finland and people are happy to pay because they have everything they want. So here, if you pay it and government did not do anything, then they will not continue to pay,” Ede said.

He recalled that Nigerians paid taxes effectively during the colonial era “because they saw the effect of the payment. Each councilor was responsible to ensure that taxes were collected and people paid freely, but when the crude oil money came, the whole thing slowed down, and even the government was not even interested in paying tax and everybody went his way.”

Ede stated that the workshop was designed to enlighten Nigerians on the need to pay tax, stressing that lack of awareness was part of the challenge faced by the tax system in the country.

According to him, “We need continuous enlightenment to tell people the benefits because tax is an obligation. Tax payment is for government and so everybody is obliged to make contribution. It is good that everybody makes contribution according to his ability.”

The Executive Chairman, Federal Inland Revenue Services (FIRS), Tunde Fowler, said the federal government was determined to ensure that Nigerians pay taxes as part of their obligation to the country, assuring them that it would be effectively utilized.

Fowler, who was represented by the Coordinator for Enugu and Ebonyi States, Mr. Gbolaga Oshiga, stated that government would ensure that the burden of payment was not high on the people, stressing that the workshop was to improve enlightenment on government’s efforts among others.