Focus on highest incomes for personal income tax – PwC
PwC’s tax policy partner and African tax officer Mr. Taiwo Oyedele has advised federal and state governments to direct their personal income tax collection efforts towards the upper class, saying the informal sector earned too little to pay taxes.
Oyedele said this during his opening speech at the Media Independent Practitioners Association Business Outlook session held in Lagos.
According to him, countries with tax revenues higher than the percentages of gross domestic product have focused on their top 1 to 5 percent of incomes and instead grant tax exemptions to the lowest incomes.
Oyedele said: “South Africa, for example, has suffered a recession, high unemployment just like Nigeria and its population is less than a third that of Nigeria. Earning 4 million N per year equivalent in SA exempts you from personal income tax.
“Even with that, they generated the equivalent of N14 billion in personal income taxes alone. Nigeria has never generated N1tn in PIT. One thing I constantly tell policymakers is that they are looking for taxes in the wrong places.
“The informal sector has no money to give you. You make your money with the richest five percent of society and that is what you see all over the world. The richest 1% in South Africa pay more PPI than the other 99%, ”he added.
During his presentation, Oyedele advised marketing communications professionals to adapt to recent innovations in the digital world.
He said the recent wave of social media influence and the low barrier to entry to becoming a marketing expert could threaten the professional marketing communications industry.
“The dynamics demand that you hone as a professional and develop a different mindset to stay relevant. Develop a growth mindset and seek to do things differently, ”he said.
Oyedele also urged marketers to take advantage of the African Continental Free Trade Area Agreement, describing Nigeria as a dynamic market positioning them to take over the continent.
He said: “With AfCFTA, you have a huge opportunity to own Africa. If you look at the vibrant markets of Africa, you can’t rule out Nigeria.
“Despite the difficult circumstances, we still dominate the digital scene. So you’ve got to get on the back of that with your association and lead the charge. ”
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