Personal Taxes

Give attention to high earners in revenue tax – PwC

PwC’s Fiscal Policy Partner and Africa Tax Leader, Mr. Taiwo Oyedele, has advised federal and state governments to direct their personal income tax collection efforts towards the upper class, as the informal sector earns too little to be able to afford tax payments.

Oyedele said this during his keynote address at the Business Outlook Session of the Media Independent Practitioners Association in Lagos.

According to him, countries with a higher percentage of tax revenue in relation to gross domestic product are focusing on their top earners of one to five percent and instead grant tax exemptions to the low earners.

Oyedele said, “South Africa, for example, has suffered a recession, high unemployment rates like Nigeria and its population is less than a third of Nigeria’s population. If you earn N4 million a year in South Africa you are exempt from income tax.

“Nevertheless, they earned N14tn equivalent in income taxes alone. Nigeria has never generated N1tn in PIT. I keep telling policy makers that they are looking for taxes in the wrong places.

“The informal sector has no money for you. You make your living with the top five percent of society and you see that all over the world. The top percent in South Africa pays more PIT than the other 99 percent, ”he added.

During his presentation, Oyedele advised marketing communications professionals to be prepared for the latest innovations in the digital world.

He said the recent wave of social media influence and the low barrier to entry on the path to becoming a marketer could threaten the professional marketing communications industry.

“The dynamic demands that you educate yourself as professionals and develop a different mindset in order to stay relevant. Develop a growth mentality and try to do things differently, ”he said.

Oyedele also urged the marketers to take advantage of the African continental free trade agreement, describing Nigeria as a dynamic market that positions them to take responsibility on the continent.

He said: “With the AfCFTA you have an immense chance to own Africa. Looking at the vibrant markets in Africa, one cannot rule out Nigeria.

“Despite the difficult circumstances, we still dominate the digital scene. So you have to ride with your bandage on your back and bring the charges. ”

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