Akabueze: Wealthy Nigerians should be made to pay more taxes

Ben Akabueze, director-general of the budget office of the federation, says rich Nigerians must be taxed appropriately in order to enhance revenue generation.

Akabueze said this on Monday in Abuja at the launch of the World Bank’s report titled, ‘Nigeria public finance review: fiscal adjustment for better and sustained results’.

He said wealthy citizens should be made to pay taxes equal with their earnings.

“We need to tax the rich. We have extremely wealthy people existing side-by-side with extremely poor people. I describe it as ‘elite conspiracy’ not to distribute a fair share of the nation’s resources,” Akabueze said.

“If you own a private jet, that is fantastic. If you buy one for yourself, buy one for the country by paying 100 percent tax on it. This is not an area of debate.

“Certain sectors that are growing very well also need to pay taxes. The creative and media– you have all these folks assaulting us daily with their show of their new cars.

“I don’t see any other option. We have to tax the rich. They should pay taxes commensurate with their earnings.”

Also speaking during a panel session, Patience Oniha, director-general of the Debt Management Office (DMO), said she would prefer to have all Nigeria’s external borrowings as concessional facilities.

Oniha, however, explained that concessional sources were limited and as such others had to be explored.

She further emphasised the need to raise more tax revenue as well as source funds from the nation’s assets rather than ignoring them.

Agreeing with Oniha’s position, Doyin Salami, the president’s chief economic adviser, said Nigerians must pay tax for the country to generate revenue or be forced to pay higher interest rates on borrowed funds.

“If you don’t pay tax, you will pay high interest rates because if you don’t pay tax, we have to go borrowing and if we borrow, we have to repay the loans with higher interest rates,” Salami said.

He noted that the income disparity between the wealthy and the poor in the country was “frighteningly” wide.

“We have to raise more taxes from the rich for social balance,” he added.