Some financial experts have said that the Federal Government’s proposal to impose 25 per cent personal income tax on Nigeria’s wealthiest citizens would reduce inequality and boost the nation’s revenue.
The experts expressed their views in separate interviews with the News Agency of Nigeria (NAN) on Sunday in Lagos.
Mr Samuel Agbelaye, President of the Chartered Institute of Taxation of Nigeria (CITN), commended the proposed tax policy and noted its potential to improving Nigeria’s economic standing.
“For us to rejuvenate the country’s economy and move from being a potentially great nation to an actually great one, we need to take cues from what advanced countries have done,” he said.
Agbelaye cited Sweden as an example, where the minimum tax rate for the wealthy is around 45 per cent.
He noted, “Despite this high tax rate, Sweden remains one of the most prosperous countries with a high quality of life.”
He emphasised that proper implementation of this policy in Nigeria would also raise political awareness among the elite.
According to him, this will encourage their participation in the political process and increasing accountability in the use of public funds.
“This could translate to providing much-needed public goods for all citizens, regardless of their status,” Agbelaye added.
Similarly, Mr Mc-Antony Dike, former President of CITN, endorsed the 25 per cent tax proposal, stating that “it is fair for those who earn more to contribute more to the nation’s commonwealth.”
“The wealthy benefit the most from government policies and services compared to ordinary citizens.
“So, they should be willing to pay a larger share in taxes,” Dike said.
He dismissed the idea that economic downturns should exempt the rich from higher taxation, stressing that they continue to generate significant income in spite of the challenges.
Mr Okechukwu Unegbu, former President of the Chartered Institute of Bankers of Nigeria (CIBN), also supported the proposed tax policy, noting that it could be extended to top corporate executives.
According to him, this should be extended to those who live extravagant lifestyles without clear justification for their wealth.
“The government’s decision is sound, but it should also include pentecostal clergy, many of whom live in excessive affluence while the economy struggles,” Unegbu said.
He further emphasised the need for the federal government to demonstrate prudence in the use of public funds.
This, he noted, would help to gain the support and trust of citizens during the policy’s implementation.
NAN reports that Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, had said that wealthy Nigerians.
Accorsing to him, Nigerians earning N100 million and above, annually, could face a 25 per cent personal income tax if the proposed tax bill is passed by the National Assembly.
Oyedele noted that 90 per cent of the current taxpayers in Nigeria are individuals who should not be taxed.
He called for a more equitable tax system that eases the burden on lower-income earners while ensuring the wealthy contribute a fairer share to government revenue.
Oyedele spoke at the breakout session during the 30th Nigerian Economic Summit organised by the Nigerian Economic Summit Group and the Ministry of Budget and National Planning in Abuja. (NAN)
