Financial experts support government’s proposal to tax wealthy Nigerians
Financial experts have voiced their support for the Federal Government’s proposal to tax additional wealthy Nigerians, viewing it as a means of income redistribution that can bolster the country’s fiscal revenues.
Dr. Muda Yusuf, the Chief Executive Officer of the Center for the Promotion of Private Enterprise (CPPE), welcomed the government’s proposal as a form of progressive tax, with high-net-worth individuals expected to pay more taxes. He noted that this approach is common in economically developed countries and contributes to income redistribution.
Yusuf criticized the prevailing situation where wealthy citizens do not pay a fair percentage of taxes, stating that their tax remittance is often inadequate considering their net worth and affluent lifestyles.
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Dr. Mc-anthony Dike, a former President of the Chartered Institute of Taxation of Nigeria (CITAN), described the government’s proposal to tax more wealthy citizens as constitutional. He pointed out that Nigerian tax laws stipulate that everyone who earns an income, whether legitimate or otherwise, must pay their taxes.
Dike highlighted that rich Nigerians who avoid paying taxes deprive the government of revenue to provide essential public services for citizens.
He noted that countries like South Africa have demonstrated greater tax compliance culture than Nigeria, with personal income tax contributing significantly to total tax collection.
Mr. Godwin Anono, the President of the Standard Shareholders Association of Nigeria, viewed the government’s plan as a novel initiative aimed at reducing economic inequality in society. He believes that the elite should contribute to the well-being of economically vulnerable citizens through taxes.
Anono suggested that the federal government should leverage technology to bring more eligible taxpayers into the tax net. The government’s plan to tax more wealthy Nigerians is part of President Bola Tinubu’s reform efforts to achieve an 18% Tax-to-GDP ratio within three years.
This policy aims to enable the rich to contribute more to taxes for the benefit of the less privileged while also contemplating a reduction in the corporate income tax rate to stimulate business growth.
