Tax : Nigeria's new Oil?

Published on September 18 2017 by Adebowale Miftau A

Voluntary Asset and Income Declaration Scheme (VAIDS) is a scheme by the Federal Government to help increase tax awareness and compliance among Nigerians. This scheme grants all tax-paying citizens a limited opportunity to regularize their tax status without penalty or interest charges.

All citizens are advised to declare their assets as the Federal Government have put in place a team of international asset tracers and investigative specialists to help track assets held by Nigerians. The scheme would last from the 1st July 2017 to the31st March 2018 after which there will be no form of compassion for tax evaders who fail to utilize this scheme.

VAIDS offers a very flexible payment plan with provision for installment payments in the scheme. This scheme, like many other successfully implemented international tax schemes, will help to generate a substantial amount of revenue to complement the dwindling revenue generated from oil. The scheme is estimated to help generate about US$1billion worth of revenue. These funds would help to reduce Nigeria’s borrowing needs,spur development and allow investment in vital infrastructure.