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Enugu Govt And Sponsored Fuss Over Tax Innovations

By AnchorNews   | 09 Nov, 2023 05:38:18pm | 253

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By Samson Ezea 

Dotting and trending on some social media platforms recently were some pictorials of arranged and sponsored protests by some tipper drivers and some jaundiced articles and publications about some disruptive innovations introduced in the tax system by the Enugu State Government to streamline, improve and harmonise its tax system,  eliminate losses and plug loopholes to increase revenue.

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The purveyors and sponsors of the above-mentioned intentionally presented false narratives about the long  overdue innovations to portray Governor Peter Ndubuisi Mbah and his government in a bad light. They made it look as if Mbah is insensitive to the plight of the people by over- and double-taxing them.  Expectedly, they didn't see anything good in the innovations simply because it hindered them from usual tax evasion, diversion, and pilfering of government revenue. 
   
Critically, looking at the Mbah government's tax innovations such as e-payment, enforcement, accountability, traceability, and others, they are not different from what are obtainable in other climes and states in Nigeria. I was disappointed with the way and manner some persons politicised these innovations and even tried to incite people to sabotage them. I am not surprised and disappointed that Gov. Mbah, in his usual candour, tenacity, and resilience, had insisted on them. Governor Mbah knows what he wants, where  he is taking the state to with the expected, planned, and anticipated exponential economic growth of the state from 4.4bn dollars to 30bn dollars. This can not be achieved or attained without enough revenues. Adequate revenues are needed to engender rapid infrastructural  development and sustainable economic growth. 

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I recall that during my primary school days as a pupil, we were often taught by our social studies teacher that tax is a civic and constitutional obligation and responsibility of the citizens. I also recall that my father and uncle usually paid taxes in the 80s and thereafter. Then, some parents in my community who were not up-to-date in tax payments often shunned market days to avoid being arrested or molested by tax collectors and enforcers. It is factual that tax and its collection by government is as old as government and her citizens. Globally, citizens, companies, organizations, and agencies willingly and reluctantly pay taxes to governments. The government fixes tax rates, maps out ways to collect taxes, and how to punish offenders. Taxes are major sources of revenue to governments at all levels. That is why every responsible government does not play with its tax collection and usage. 

While those opposed to or critical of the disruptive tax innovations by Gov. Mbah's government in Enugu State are entitled to their opinions, that shouldn't deter government from generating its revenue, considering that taxes are being enforced and paid in other states and Mbah's government has embarked on aggressive and massive infrastructural and human developments across the state. 
  
It is on record that state like Lagos recently shut down 34 corporate organizations for failing to remit Personal Income Taxes of their employees and for non-remittance of Consumption Taxes by operators in the hospitality sector to the state. Some of these companies included NTS Nigeria Ltd., Med-In Hospital & Pharma Services Ltd., Danvic Petroleum Int'l Ltd., Business Intelligence Technology, Avaya Nigeria Ltd., Gladstone Tech Ltd., Courier Plus Services Ltd., Kurioucity Ltd., Medilag Ventures Ltd., Future Oilfields, and Seven Six & Ten Limited. During the same operation, 23 hotels, restaurants, and event facilities were also closed for failure to deduct and remit consumption taxes. These businesses included Blitz Suites & Hotel, Offshoroomz Hotel, God's Grace Hotel, De Orange Place Ltd., De Santos Hotel, Kentade Hotel Limited, Chamcee, Chelsea Suites, Falode Hotels, High Climax Hotel, Chez Moi Apartment, Excellence Hotel, Bereans Venture (Tantalizer Ebute Metta), La Avril Hotel & Suites, De Orange Place Ltd., Milaco Guest House, New World Inn, Model Motels Ltd, Rely Maritime Ltd, 4 Seasons Hotel, Dream Land Hotel, 343 North Restaurant and Lounge, and Jade Palace Chinese Restaurant.
  
Speaking, Mr. Seyi Alade, the Director of Legal Services Lagos Inland Revenue Service, reported that the tax liabilities of these companies and hotels amounted to more than =N= 356.12 million. He said their actions had caused the State Government loss of revenue, insisting that the Agency had previously reduced its enforcement activities to promote voluntary compliance by taxpayers. However, certain companies and hotels chose to engage in tax evasion. Therefore, the renewed enforcement activities of the Service are targeted at such companies, restaurants, hotels, and event centres. He emphasized that the primary goal is to secure compliance with the remittance of Consumption and Personal Income taxes, enabling the Lagos State Government to carry out projects intended for the well-being of the vast populace resident in Lagos State.
   
Mr. Alade further reiterated that “these companies deduct Personal Income taxes from their employees' salaries at the end of each month, and charge consumption taxes on goods and services purchased by customers.
 Unfortunately, some unpatriotic firms choose to withhold these payments, illegally converting the funds for their own use."
    
In the same Lagos State, where I have resided for over a decade, individuals buy land mainly water-logged, pay for building approval fee and other sundry charges to governments, build houses, construct roads and electrify the place and Lagos State government will come and collect taxes without any resistance or opposition from owners and residents. My vehicles' licenses in Lagos expired recently. A few days after I was notified via text messages, I was charged  N20,000 penalty for delayed renewal by the Lagos State Government, which I protested to no avail. I paid the penalty before I was allowed to pay for my renewal fees for the vehicles.
   
These severe measures  are not in practice in Enugu State and some people are still criticizing, complaining and kicking against Gov. Mbah's innovations in state's tax system. It is a credit to Governor Mbah that his government has not adopted extreme and draconian measures as being practised in some states in the collection of taxes and revenue in Enugu state. 
   
For the obvious facts and reasons that Gov.Mbah’s government has embarked on massive infrastructural development, human empowerments and tackling of insecurity across the state, which had created the enabling environment for businesses to thrive are enough for the people to support his government's  disruptive innovations in the state's tax system. 
   
It also behoves the people to monitor and evaluate objectively how Gov.Mbah's government is utilizing this revenue in bettering the lots of the people and not to be criticizing or opposing it at all times. Government and governance are synonymous with taxes and revenue generation. Besides, tax evasion is a criminal offence that no responsible government treats with kid gloves.


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