BUSINESS DAY
Nigeria has the potential to generate N4.59 trillion annually by taxing just 4,690 of its wealthiest individuals, according to Auwal Rafisanjani, the executive director of the Civil Society Legislative Advocacy Centre (CISLAC).
He made this known during the launch of the Fair Tax Monitor Index and Wealth Taxation Report in Abuja on Tuesday, emphasising the urgent need for tax reforms to address the nation’s socioeconomic challenges.
Rafisanjani called for a paradigm shift in Nigeria’s tax system, advocating for a full exemption of individuals earning below N840,000 per year from Personal Income Tax (PIT) and an increase in the top tax rate to at least 40% for the wealthiest one percent of citizens.
He noted that Nigeria is currently grappling with significant financing shortfalls, with over half of its population living in poverty and an annual deficit of more than $10 billion needed to achieve Sustainable Development Goals (SDGs).
A report commissioned by the Federal Inland Revenue Service (FIRS) revealed that 99% of Nigeria’s super-rich evade taxes, resulting in a mere 0.035% compliance rate.
Of the over 115,000 High Net-Worth Individuals (HNWIs) in the country, only 40 have been identified as compliant taxpayers.
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