The Joint Tax Board says it has designed a system that will make politicians pay the right taxes. It noted that many Nigerians who pay their taxes from their meagre income were unhappy that politicians, who earn huge salaries and allowances, only rush to pay nominal amounts to secure Tax Clearance Certificates during electioneering.
The Executive Secretary of JTB, Mrs Nana-Aisha Obomegie, said these at a webinar, with the theme ‘Critical Tax Reforms for Shared Prosperity’, organised by the Nigerian Economic Summit Group on Wednesday.
She stressed that Nigeria would go nowhere without an improved tax collection system, adding that despite the country’s population, its tax to Gross Domestic Product ratio remained low at about six per cent compared to the 18 per cent average on the continent.
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When implemented, she said the new system, for which a committee had been set up, would help to ensure that both politicians and non-political persons pay the right taxes.
The Joint Tax Board was set up to ensure uniformity of standards and application of Personal Income Tax in Nigeria, and it comprises the chairman, who is the Executive Chairman of the Federal Inland Revenue Service, Muhammad Nami, and a representative from each state.
Obomeghie said, “There is resistance to pay tax in Nigeria. When you go out to collect these taxes, people ask you certain questions that you cannot even answer, especially about political office holders. People tell us, for example, that lawmakers earn millions but that you are trying to collect tax from them to pay the politicians.
