Financial experts have expressed strong support for the Federal Government's proposed 25% personal income tax on wealthy Nigerians, a move aimed at reducing economic inequality and increasing national revenue. Mr. Samuel Agbelaye, President of the Chartered Institute of Taxation of Nigeria (CITN), highlighted the potential of this tax to improve Nigeria's economy, drawing parallels with Sweden's high tax rates that contribute to robust social services. Mr. Mc-Antony Dike emphasized that the wealthy should contribute more to the economy, as they disproportionately benefit from government services. Furthermore, Mr. Okechukwu Unegbu suggested that the tax should also extend to top corporate executives and affluent clergy, ensuring a broader base of contribution from the wealthy sector. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, indicated that individuals earning N100 million annually could be subject to this new tax if the bill is passed. He noted that currently, 90% of taxpayers are individuals who should not be taxed, advocating for a fairer tax system that alleviates the burden on lower-income earners while ensuring that wealthier citizens contribute their fair share. This proposed tax aligns with ongoing discussions about reforming Nigeria's tax system to enhance revenue generation without imposing undue hardship on the majority of citizens. [9150956e]
In a related context, Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), has attributed the agency's recent success in increasing tax revenue to President Bola Ahmed Tinubu's economic decisions, including the removal of fuel subsidies and the unification of the exchange rate. Under his leadership, FIRS reported a 58% increase in tax revenue in the first quarter of 2024 compared to the same period in 2023. Adedeji emphasized the importance of a customer-focused approach to tax administration and the need for harmonizing taxes to reduce multiple taxation in Nigeria. He also highlighted the role of taxes in funding infrastructure projects and called on Nigerians to view FIRS as a partner in progress. [dab2c6da]
Additionally, the Federal Capital Territory Internal Revenue Service (FCT-IRS) has generated N126.54 billion in revenue in the first six months of the year, an increase of N6.54 billion compared to the same period last year. The Executive Chairman of FCT-IRS, Mr. Abdullahi Attah, announced plans to intensify revenue generation efforts, particularly in sectors such as real estate, transportation, and hotels. The agency aims to enhance its tax administration system for greater efficiency and effectiveness. [9866d9c0]
Furthermore, Taiwo Oyedele has suggested that Nigeria can close the tax gap without raising taxes by leveraging data and technology to ensure compliance among those who currently evade taxes. He advocates for tax exemptions for vulnerable populations and a more equitable tax system that supports wealth creation rather than penalizing income earners. [91b2e779]
Lastly, a professor from Obafemi Awolowo University has called for a windfall tax on banks, arguing that they should contribute more to national development given their benefits from government policies. This proposal adds to the ongoing dialogue about fair taxation and the responsibilities of various sectors in contributing to Nigeria's economic growth. [5cb4e034]