Politics
THE Nigerian Labour Congress wants the federal government to review its taxes policies which currently favours the rich against the poor
| By Anayo Ezugwu | Jul 10, 2017 @ 01:00 GMT |
Following the threat by the federal government that tax evaders in the country will face at least five years imprisonment and asset forfeiture, the Nigerian Labour Congress, NLC, has asked the government to review its tax policies. The NLC noted that the current tax policies favour wealthy Nigerians and corporate organisation over workers.
Ayuba Wabba, president, NLC, said the government never fails to tax public and civil servants, whereas it overlooks high net-worth individuals and corporate organisations, who engage in illicit financial transactions to escape paying correct taxes. “You will remember that last year, we led a campaign to the ministry of finance to advocate for tax justice and to stop illicit financial flows from Africa; because in the context of taxation in Nigeria, it is only workers that pay the correct tax, through Pay as You Earn, PAYE.”
According to him, in other climes, it is the high and the mighty that are supposed to pay tax to subsidise the poor. But he noted that in Nigeria it is the poor that is subsidising the rich. “This is why we are demanding for tax justice. Resources can only be made available if people are able to pay their correct taxes.”
The NLC president noted that the Panama Papers leak has exposed the manner in which tax resources are being diverted away from the Nigerian state towards tax havens and urged the government to do something about it. “Part of our campaign this year is to halt illicit financial flows and also to demand for tax justice, where workers and citizens, especially the high and mighty, should pay the correct tax.
“As an outcome of the NLC’s visit to the ministry of finance, some progress has been made; the federal government has set up a presidential committee to address illicit financial flows and also to ensure that issues of tax are appropriately addressed”, he said.
Wabba’s statement came on the heels of Kemi Adeosun, minister of finance’s disclosure all tax evaders, when identified, would subjected to the full force of Nigerian and international law, including imprisonment of up to five years. “There are also extra severe penalties of up to 100 percent of the outstanding tax due, compound interest at 21 percent per annum and forfeiture of assets. The plan to be executed jointly by federal and state governments concentrates on the national duty of all Nigerian companies and citizens to pay their taxes from wherever their income is earned, wherever they reside and no matter how rich they are.”
Adeosun added that tax evasion leaves an unfair burden of payment on the poorest Nigerians. She, however, expressed joy that regulatory change was enabling easier access to information across the world for the government to track taxable obligations of the citizens. “International agreements effective 2018 make the exchange of banking information across borders automatic. Nigeria has signed agreements with a number of nations (United States, UK, Canada, UAE, Switzerland, Mauritius, Panama and Bahamas) – all of whom have pledged support and cooperation to exchange information on citizens that is relevant for tax purposes.”
According to her, tax evaders who want to avoid the full force of the law have between July 1 and December 31, to regularise their tax status in exchange for immunity from prosecution of tax offences and a tax audit, and be absolved from penalty charges and interests. She said the government targets at least $1 billion from this initiative, assuring that the funds would be judiciously and transparently spent.
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