The Ogun State Government says it is targeting over N3bn additional revenue from the informal sector of the state economy as it enlists about one million residents from the sector into the tax net.
The Chairman of the State Internal Revenue Service, Mr Kunle Adeosun, made this disclosure during an interview with journalists while on a road show to markets and motor parks where he enlightened residents on the Voluntary Assets And Income Declaration Scheme in Abeokuta, the state capital.
“Our target in the informal sector is to at least quadruple what we get in payee because that is where the volume is. In Ogun state, the population is put at about seven million and out of those seven million, people taxable is roughly 40 percent of that,” Adeosun said.
“So out of those 40 percent, if we can get just additional one million people in the informal sector, then we are home ground. Minimum tax there is 3,100 and if you multiply that by one million people, that is over three billion. That is on the average.” he concluded
While asking residents to show better understanding with the government as the scheme gradually takes effect, Mr Adeosun said that the state government will apply the full weight of the law against defaulters
”The federal government launched the Tax Thursday about two weeks ago. Part of the scheme is to run enlightenment on Voluntary Asset and Income Declaration Scheme. Every Thursday has now been designated as Tax Thursday until next week when the amnesty programme ends.”
”In all locations, we will be running this every Thursday just to make sure that we draw more enlightenment for people to come and file all the assets and income they have not declared in the past and to take advantage of this amnesty programme,” he said
He explained that the government is not only targeting the informal sector but everyone that has assets and income they have not declared in the past.
“Even if you are a payee, where you pay your tax but have investment income like a gas station or rentals, you are supposed to pay taxes on those other businesses in addition to the payee you do,” he said.
”There is punishment for defaulters but if you come and declare voluntarily during the tenure of this scheme, you will not face a penalty but once the scheme ends, then it is back to the enabling law which allows for penalty, interest and jail term.”