The Federal Government (FG) on Wednesday said it is targeting $1 billion, from the Voluntary Assets and Income Declaration Scheme (VAIDS) but said this target may be surpassed on the positive response received so far.
Minister of Finance, Kemi Adeosun, stated this Wednesday, while briefing State House Correspondents shortly after the weekly Federal Executive Council (FEC) meeting, presided over by Vice President Yemi Osinbajo, at the Council Chambers of the Presidential Villa.
Adeosun said the program with a nine-month window, also received approval for a memo to embark on massive publicity for the sum of N1.5b to cover advertising campaign for nine months, for Radio, TV, Online and newspapers.
Adeosun also briefed FEC on the progress so far made under the tax amnesty program, which she said was well-received by her fellow ministers.
She expressed confidence that people were ready to declare and pay.
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“We projected a target of $1b and we have already received the sum of $110, 000, 000 and that is just from two companies. So, we feel we might exceed that target, within the nine months period.
“We sent out over 500 letters under the first batch, but there are thousands of Nigerians being targeted but the first 500 letters have gone out. We have started to get responses back and many people are asking for time to pay.
“This is indeed very good news for Nigeria, as it will help reduce over-reliance on oil. It will improve our tax revenue so that whether oil prices are high or low, we will be able to provide basic services for our people. Very high net worth people are now being brought into the tax revenue profile. We hope to exceed the target that has been set.”
The minister said it was too ” early to give exact figures of the number of responses received so far, since we just started dispatching the letters on Monday ” she, however, hinted that ” dedicated telephone lines” have been opened for the project, adding that ” a lot of people have called in to express their readiness to cooperate.”
Adeosun also harps on support from the governors of the 36 states of the federation, whose support is expected to help drive new tax income from states.
“They also agreed to accommodate those who agreed they are owing but haven’t got the cash to pay. Somebody might have the house but may not have the cash. Let’s give them chances to bring this money because this money is sustainable money and we have asked that they give them time to bring in this money and they have agreed to do so. From now on, they are ready to pay their right taxes.”
The government used several criteria to get the first 500 persons, including information from land registry details from all the state governments, including the Federal Capital Territory,(FCT. )
Others include information from the Bank Verification Numbers (BVN) and registration from the Corporate Affairs Commission (CAC)
“We also look at people who had come out in the Panama and Paradise papers, we look at people who have companies being paid by the government but are not paying the right taxes. Even if you have not gotten a letter yet, do not think we have forgotten you. These are just the first 500, others will soon follow. It does not mean that we do not have you in our radar. For now, we are looking for high risk people.”
Also speaking on the Whistleblower policy, Adeosun said the total amount due, which also includes the amount for the Osborne Road, Ikoyi incident, is N421, 330, 595 and will be paid to beneficiaries, this November.
” This is for the November batch and it is ready for payment. The only condition necessary is that the money will be paid to the Whistleblower who signed the agreement. Not to any company.”
READ ALSO: Tax amnesty: A win-win for everybody
Adeosun said it takes a minimum of three months to commence payment processing, to avoid conflicts of interest.
“If we get the court judgement, we have to wait for three months to ensure that there are no encumbrances. We also make sure that all applicable taxes are paid ahead. We get in touch with the state government where the person is domiciled, we pay the tax directly to the state and issue the tax receipt. So we built in these procedures to protect the Whistleblower.”
Minister of Water Resources, Suleiman Adama, said the FEC approved the payment of N1.72b for settlement of claim to the contractor who had maintained the Gurara water dam for nine months after terminating the contracts
He further added that the termination followed the taking over of the dam management by its staff who have been trained to do so, henceforth.
Tony Ailemen, Abuja
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