Nigeria's Extra $110,000,000 Income
The Nigerian government is building new economic models. The latest one is Voluntary Assets and Income Declaration Scheme (VAIDS) which essentially gives a time window for Nigerians and Nigerian entities to self-report on unpaid taxes.
VAIDS is a government tax amnesty programme that allows a nine-month window for defaulters to voluntarily self-assess and declare their correct local and foreign assets/incomes for taxation purposes.
From this week, government will send tax status letters to about 500 high net-worth Nigerians. Sure, if you say you are rich, now is the time to pay taxes accordingly.
According to the Finance Ministry, the initiative, which started this July, will run till March 2018. Once it ends, defaulters will be treated as tax evaders.
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VAIDS is working: Nigeria recently received $110,000,000 from two firms who wanted to make whole of their taxes. I expect this to become better as government links bank accounts, tax data, import data, and other data sources to model expected taxes from companies.
This is big data mining with hundreds of Community Tax Liaison Officers (CTLOs) employed by government to watch over companies and people. Government should put the same efforts to support SMEs for sources of future taxes. The efficiency in deploying the CTLOs should be used to support SMEs which have been largely neglected.
Nigeria is working...
This initiate is welcomed.
Having said that, SMEs need government's intervention to take its rightful position. Government must help SME by streamlining business registration process. Also, FG must invest in education. Our higher institution students need enterpreneurship education. Nigeria universities should partner with small business incubators to help generate new businesses that the youth need to survive.
