Most Nigerians Do Not Pay Tax, El-Rufai Says

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Governor Nasir el-Rufai speaking at 22nd Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN), in Lagos.
Most Nigerians Do Not Pay Tax, El-Rufai Says - Vantage News Nigeria
Governor Nasir el-Rufai speaking at the 22nd Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN), in Lagos.

The Governor of Kaduna State, Nasir El-Rufai, has said that only a minority of Nigerians pay income tax.

El-Rufai, who is the keynote speaker at the 22nd Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN) in Lagos, stated that the tiny minority that pays tax are persons whose taxes are deducted from their salaries.

The conference themed “taxation and economic competitiveness from the prism of a subnational economy,” also has the Governor of Lagos State, Babajide Sanwo-Olu in attendance.

Most Nigerians Do Not Pay Tax, El-Rufai Says - Vantage News Nigeria
A cross section of participants at the CITN 22nd annual conference in Lagos.

El-Rufai said that the non payment of tax by Nigerians depresses public finances and hampers the ability to deliver public goods and infrastructure.

He said, “Only a minority of Nigerians pay income tax, and this tiny minority are persons whose taxes are deducted at source. We live in a country where paying tax is treated as an illegitimate imposition. Voluntary compliance with the obligation to pay income tax remains a challenge.”

“In this situation, the federal and state governments cannot collect as much tax as they could. This low rate of internal revenue collection depresses public finances and hampers the ability to deliver public goods and infrastructure…”

“This in turn limits competitiveness, shrinking the ability to promote the sort of economic dynamism that can create jobs, expand public revenues and improve public welfare.”

“There has been steady rise in revenue collection in Kaduna State within the last four years. We have increased our revenues from N23bn in 2016 to N44.9bn in 2019.”

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