Many financial experts have expressed approval for the Federal Government’s proposed personal income tax of 25% for the wealthiest Nigerians. They said the tax policy would bridge the wide gap in financial inequality and boost revenue generation for the count.
In interviews granted to the News Agency of Nigeria (NAN) the they say the policy is capable of salvaging Nigeria’s ailing economy if it is effectively and strictly implemented.
Mr. Samuel Agbelaye, President of the Chartered Institute of Taxation of Nigeria (CITN), lauded the proposal, noting its potential to turnaround Nigeria’s economic standing.
“For us to rejuvenate the country’s economy and transition from a potentially great nation to an actually great one, we need to learn from what advanced countries have done”. Mr. Samuel Agbelaye said.
He further cited Sweden as example of a country where the wealthiest citizens pay an income tax of around 45%, yet the country remains prosperous with a high standard of life and still improving.
He proclaimed that such policy would increase political participation among the wealthy industrialists and deepen accountability among the wealthy class.
“This could translate into providing much-needed public services for all citizens, regardless of their status,” Agbelaye noted.
A former President of CITN, Mr. Mc-Antony Dike, endorsed the 25% personal income tax proposal, stating that “It is only fair for those who earn more to contribute more to the nation’s commonwealth.”
Mc-Antony Dike further said that the wealthiest Nigerians often benefit the most from government policies, so they should pay a commensurate share of taxes.
A former President of the Chartered Institute of Bankers of Nigeria (CIBN), Mr. Okechukwu Unegbu, joined in endorsing the proposed tax policy, suggesting it should be extended to include top corporate executives and individuals who often exhibit extravagant lifestyles without a clear justification for their wealth.
He highlighted the need for the Federal and State Governments to show more prudence and transparecy in the management of public funds in order to encourage willful payment of taxes by citizens and minimize tax evasion. Also, He said the trust of citizens is essential for the success of any tax reform. He also called for the taxation of religious organizations.
In his statement made available to 9am News Nigeria he said “The government’s decision is sound, but it should also include Pentecostal clergy, many of whom live in excessive affluence while the economy struggles”.
Further information
9am News Nigeria recounts that during the recently held 30th Nigerian Economic Summit, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, gave a hint that the Federal Government was mulling a policy that will drastically raise taxes for the wealthiest Nigerians.
Oyedele said that 90% of the current taxpayers in Nigeria are individuals who should not be taxed because their income are pitifully low.
He called for a more fairer and equitable tax system that eases the burden on lower-income earners while ensuring the wealthy contribute a more just share of government revenue.
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