9 Takeaways From Launch of #VAIDS at the State House
1. The Voluntary Assets and Income Declaration Scheme (VAIDS) will last from July 1, 2017 to March 31, 2018.
2. VAIDS will be supported by an executive order that was signed into law today by Acting President Yemi Osinbajo today 29 June, 2017.
3. For the last 15 months, a high- level team has been working with the Federal Ministry of Finance on Project Light House. This project entailed gathering data from a wide range of sources to understand the degree of tax compliance in Nigeria.
4. Nigeria has a total of 69.9 million economically- active individuals but only 14 million of such people are tax payers- 96% of them have their taxes automatically deducted through the Pay As You Earn (PAYE) system and 4% comply by paying willingly.
5. Each year, N20 million is generated in tax from only 214 Nigerians. All 214 are based in Lagos State.
6. The Federal Ministry of Finance, under the N- Power scheme is in the process of employing 7,500 Community Tax Liaison Officers (CTLOs), who will be trained to educate and sensitize citizens on the importance of paying tax and Nigeria’s tax system in general.
7. The Federal Government has declared every Thursday from today June 29 2017 till the next one year, #TaxThursday. These Thursdays have been set aside for tax enlightenment and awareness and to welcome new taxpayers.
8. Nigeria is now party to the new global standard on Automatic Exchange of Information (AEOI), which kicks off 2018.
9. Upon the expiration of VAIDS, Federal Government will commence criminal prosecution of tax evaders who refused to take advantage of the income declaration scheme.