In less than two weeks, the curtains will be drawn on the Voluntary Assets and Income Declaration Scheme. Ndubuisi Francis reports that there are enormous benefits and useful lessons from the tax amnesty
Taxation is not an end in itself, but an instrument for advancing citizens' well-being as part of a well-functioning state. Tax is a core part of state-building and constitutes a visible sign of the social contract between citizens and the state, enshrining the principle of revenue-for-service. Estimates of tax potential from the literature (Fenochietto 2013, IMF 2017b) suggest that a non-oil tax capacity of 16 to 18 per cent would be optimal for a country with Nigeria's economic structure and per capita income levels. This estimate implies space for additional tax collection of 12 per cent of gross domestic product (GDP) since the current tax revenue-to-GDP is about six per cent.
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