Tax board calls for taxation of high net worth Nigerians

The Joint Tax Board (JTB) has called for the taxation of High Net-Worth Individuals (HNWI) as part of drive to bridge unfair tax practices in the country. The board made the call in a communique signed by M.L. Abubakar , Chairman, JTB and Olusegun Adesokan, Secretary, JTB at the end of of its 156th meeting […]

The Joint Tax Board (JTB) has called for the taxation of High Net-Worth Individuals (HNWI) as part of drive to bridge unfair tax practices in the country.

The board made the call in a communique signed by M.L. Abubakar , Chairman, JTB and Olusegun Adesokan, Secretary, JTB at the end of of its 156th meeting held on 10th and 11th December 2024 in Port Harcourt, Rivers State.

Part of the communique read: “The Joint Tax Board notes that taxation of high net-worth individuals (HNWIs) in Nigeria has increasingly come under focus given the perceived unfairness in the distribution of the tax burden among this category of taxpayers in relation to other taxpayers.

“Therefore the Joint Tax Board recognises the need for improved intelligence gathering to Identify, track, and profile (HNWIs) in Nigeria and  encourages regular review and evaluation of the effectiveness of adopted strategies and initiatives, and support needful adjustments where and when necessary, to ensure taxation of HNWIs in Nigeria,”

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The communique also called for broad based collaboration with relevant national and sub-national agencies  to strengthen the data collection and analytics capabilities of sub-national revenue authorities  and foster international cooperation to improve tax compliance and curtall cross-border tax evasion to ensure that HNWIs are taxed fairly and transparently.

The board also noted the urgent need to accurately classify Electronic Money Transfer Levy (EMTL) disbursements, stamp duties, withholding taxes and other revenue items as tax, adding that “Such items should be credited to the internally generated revenue (IGR) accounts of the respective sub-nationals, rather than to the respective Federation Account Allocation Committee (FAAC) accounts, for purposes of assuring accuracy in reporting, and appropriate accounting,”

The JTB also advocated public enlightenment and sensitisation prior to any introduction of new rates for driver’s licence and vehicle number plates to afford members of the public the opportunity to be well informed in advance while educating them on the rationale behind the decision.