Insurance brokers back FG on VAIDS, demands strong fiscal responsibility
As the Federal Government 31 March deadline for enforcement of Voluntary Assets and Income Declaration (VAID) draws closer with affected tax payers struggling to comply, insurers under the umbrella body of the Nigerian Council of Registered Insurance Brokers (NCRIB) have demanded for fiscal responsibity.
Fiscal responsibility implies a government pursues the appropriate level of government spending and tax to maintain sustainable public finances, ensure fiscal policy aids the optimal rate of economic growth and maintain appropriate levels of public investment.
The scheme is an initiative of the Ministry of Finance that provides a time-limited window for taxpayers with undisclosed income and assets to regularise their tax status.
The Federal Inland Revenue Service, FIRS, said it is targeting more tax revenue from the implementation of the Voluntary Assets and Income Declaration Scheme, VAIDS, this year.
Between July 1 when it was launched and December 31, 2017, FIRS Chairman, Tunde Fowler, said the federal government earned about N23 billion from the scheme initiated to provide taxpayers with undisclosed income and assets opportunity to regularise their tax status.
The scheme has been described as a viable strategy to boost the country’s low tax-to-gross domestic product, GDP, ratio, currently put at 6 per cent.
Shola Tinubu, president, NCRIB said in Lagos that the Council identify with this lofty idea of government on the VAIDS.
“We are all aware that no nation could attain economic buoyancy with exploring taxation as a key revenue option of government.
According to him, most modern economies are buoyed on effective taxation and ours cannot be an exception.
However, it would be apposite to stress that it behoves government to live more to its fiscal responsibility when adequate compliance is received from the people and institutions.
“When the confidence level is enhanced, payment of taxes would no longer be seen as a burden but a cardinal responsibility to be discharged by the citizenry.
Government had on June 29, 2017 launched VAIDS, opening compliance window from July 1, 2017 and to close on March 31, 2018.
The Nigerian Voluntary Asset and Income Declaration Scheme (VAIDS) is a time-limited opportunity for taxpayers to regularize their tax status relating to previous tax periods and pay any taxes due. In exchange for fully and honestly declaring previously undisclosed assets and income, tax payers will benefit from forgiveness of overdue interest and penalties, and the assurance they do not face criminal prosecution for tax offences or tax investigations.
Tinubu who also spoke on the progress made by the Council since he assumed the mantle of leadership of the trade body in 2016, stated “the tempo of proactive response to laws and regulatory prescriptions have been sustained.
For instance, the Joint technical, legal and micro insurance committees have met to fine-tune the new regulations on Corporate Governance and Guidelines on micro insurance proposed by National Insurance Commission (NAICOM) with the hope that the far reaching suggestions by the Council would serve as good inputs into the guideline, eventually, he stated.
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