Voluntary Asset And Income Declaration Scheme (Vaids): An Appraisal Of The Intent And Objective

The level of tax compliance in Nigeria compared to the wealth and affluence displayed by high-end citizens, both within and outside the country, has been considered as having negative correlation. The need to fund the government budget which is on the rising side, the low tax to GDP ratio of 6% and the reduction in reliance on oil revenue, arising from the 21st century fall in the price of crude oil in the international market, shifted government focus to taxation as a sustainable means of generating revenue. Hence, the initiation of Voluntary Assets and Income Declaration Scheme (VAIDS) programme, which is aimed at increasing Nigeria's tax revenue generation. Although VAIDS have been extended to all citizens, it is clear that not all citizens will understand the programme and take advantage of the benefits. An appraisal of the implementation of the scheme reveals that there has been an increase in the number of taxpayers in Nigeria's tax net and an appreciable increase in the tax revenue generated during the one-year VAIDS window. However, there are still more to achieve with appropriate tax education and good governance, the desired goal of voluntary tax compliance can be achieved.