My View on Simplifying Corporate Taxes, PAYE and Executive Pay

I believe Nigeria’s corporate tax system should be simpler, with fewer special exemptions and clearer rules for investors, businesses and workers. VAT can remain flexible because consumers ultimately bear the cost, and excessive rates would quickly become apparent through higher prices. Company Income Tax should apply to every company, regardless of revenue, but at a low flat rate that does not exceed 5%. In my view, no company should be exempt from filing. Revenue lost from a lower CIT rate could be recovered through a broader PAYE and Personal Income Tax system that covers all forms of income, including dividends. I also question the need for capital gains tax if stronger rules can ensure that companies treat investors and workers fairly. Better regulation of real estate and the stock market could reduce speculative gains and make the wider economic system more balanced. Finally, CEOs should be required to earn taxable salaries higher than those of employees under them, while bonuses and benefits are declared openly and shared fairly across management and other workers. This could reduce excessive operating costs and improve pay transparency.

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