Peter Obi, former Fidelity Bank chairman, emphasized on Nigeria’s tax issues, claiming that the inadequate tax income of the nation is due to the increasing level of jobless Nigerians under the government led by President Muhammad Buhari.
The former Vice presidential aspirant said that there is a drawback to the lack of employment, and that Nigeria’s generation of income is weighing heavily.
He stated that unemployed Nigerians can not be levied to boost the nation’s tax base. During a press conference with Arise TV, he openly stated.
Nigeria is striving to maintain its tax income, but according to Muhammad Nami, Executive Chairman of the Federal Inland Revenue Service (FIRS), the country does not receive sufficient taxes.
According to Nami, who has been pressuring for the growth of the Nigerian income range, Nigeria’s source of money is presently 70 percent obtained from tax.
It is assumed that nations with a tax-to-GDP of less than 36 percent have an economic system that is not feasible, while the
West African belt threshold is 15 percent the tax-to-Gross Domestic Product (GDP) of Nigeria is 6.1 percent.
The creation of employment opportunities, according to Obi, is the solution to enhancing Nigeria’s tax issues.
“Tax is a very minor thing. The more economy and jobs is stronger, the more taxes you can obtain. You can’t tax unemployed people. You can’t go to your community and raise taxes on people who are jobless.
“Before the COVID scenario, we have 98 million inhabitants under poverty, now you’re going to have over 100 (million) staying under poverty. You’re not trying to tax them.
Tax is like a bank account; you placed in more if you want to gain enough.
So if the government did the proper thing, the more individuals you drag out of economic hardship, the more taxes you could gain. It’s a minor task,
it’s not space shuttle science.” Obi stated , indicating, “If you look at our income tax today, the people in Nigeria who are employed are 50 percent of the people who are meant to be working.
So if you put the other 50 percent on the net, you’re going to raise the tax indefinitely… so if you want more tax, you’re going to give give people work,
“Nigeria has a labor force of 80.2 million, of which according to Quartz Africa, approximately 21.7 million Nigerians are jobless and millions more are unskilled, as the rate rose to 28.6 per cent in Q2 2020, NBS maintained.