Divergent Views Trail Kwara's New Internal Revenue Regime

Date: 2015-07-17

Against the backdrop of the dwindling federal allocations to 36 states of the federation, various state governments have evolved strategies aimed at meeting the needs of their people and also addressing the issue of unpaid salaries of their workforce, a situation that has continued to be a serious burden to states in Nigeria.

In Kwara, the State of Harmony, the situation is not different as the incumbent administration led by Governor Abdulfatah Ahmed has put up a new strategy at boosting the ‎revenue generation in the state as a way of assisting his administration to meet up with the demands of governance and other social needs of the administration, so as to improve the socio economic development of the state.

It is on this premise that the governor decided to repeal the existing law that allowed for the collection of taxes in the state under the board of internal revenue service.

To actualise his objective, the governor had sought the permission of the then 7TH State House of Assembly led by Hon. Rasaq Atunwa now lawmaker representing Ilorin West/Asa federal constituency at the national assembly.

The assembly however deliberated on the old bill and within twinkle of an eye, the state lawmakers before their expiration in office repealed the old law and came out with the new revenue law called, The Kwara  State  Administration and Collection of Revenues law.

The bill, which was presented to the House by Governor  Ahmed seeks to monitor all revenue  due to the Kwara Government and 16  Local Government Councils in the State

  The law, which also established relevant administrative structures, seeks to check loopholes and consolidate on Internally Generated Revenue for the two  tiers of government in the State.

  It equally established a Board to be known as Kwara State Board of Internal Revenue at the State Level.

In addition, the bill put in place  a  committee to be known as Local Government Revenue Committee to supervise revenue administration and collection in the State

The law also seeks to penalise anybody who impersonates as revenue collectors and restricted the time limit for revenue collection within 9:am to 4:pm.

The new law equally confers on the State House of Assembly the powers to make laws for the Board subject to the provisions of the 1999 Constitution.

But residents of the state have expressed divergent opinions on the new revenue generation regime in the state which they claimed would not be easy to implement in view of the fact that, the past board of internal revenue allegedly failed to meet the needs of the society.

They claimed that the former board of internal revenue collected a lot of money from members of the public in the state without anything to show for it.

It was alleged that many of the former officials allegedly  became multi -millionaires through the various manipulations of finances of the government.

The residents contended that creating a new revenue generation regime in the state at this present economic downturn would not help the state since the past money collected had been allegedly embezzled by some officials, who were never arrested or prosecuted.

Also, the residents claimed that the past bond obtained by successive and incumbent administrations in the state could not be ‎accounted for.
However, the government had said on many occasions that they  used the bond on the infrastructural development of the state like roads construction, water supply, construction of aviation college, construction of Kwara State University, among others.

But the residents insisted that the projects did not translate into the economic development of the state.

For instance, the residents contended that the water project in Ilorin metropolis, which the state government had claimed to have used part of the bon ‎to execute has not seen the light of the day up till this moment.

According to the residents, the people of Ilorin metropolis still drink from ponds and streams in the city while those that cannot afford to construct either bore holes or ‎deep wells cannot get portable water especially during the dry season.

The residents also believe that they have been living on the mercies of international and local donors.

For instance, muslim donors are involved in the construction of bore holes in some strategic areas of Ilorin like Opo Malu, Gambari among others.

Hence, the residents have queried the motives for the collection of taxes when they could not see the direct benefit of such collections in the past.

A resident, Alhaji Yunus Abdullahi said that,"the government is just trying to impoverish the people of the state on the move to introduce new revenue generation regime in the state, knowingfully that, the current economic downturn in the country is not favorable to all and sundry".

He said, "I don't know how they want us to be getting money to pay this taxes moreso, I will open my shop from morning till evening, no one will come to ask for anything to buy".

Abdullahi who tasked the state government to continue to be prudent in the federal allocations being received every month said that," it is high time they blocked all their unnecessary wastages ranging from appointment of many political office holders and stop reckless spending on frivolous things".

‎Also speaking, one of the business operators among South East business community, which form major entrepreneurs in the state, particularly on Ibrahim Taiwo, Challenge, Murtala Mohammed and Unity Roads in Ilorin, Mr. Simon Okezie, said that the planned new tax regime would compound their business predicaments, explaining that there is lull in business patronage in the state.

Okezie, who complained over multiple taxations by the state and local governments in the state, added that ‎government should have a rethink on the new tax regime in order not to discourage investors and investment opportunities.

‎A hairdresser located along Tanke area of Ilorin, Mrs. Romoke Alli, said "we didn't bargain for this when we voted for change in 2015 election because this is meant to impoverish people. But they should not forget that 2019 is around the corner‎ for us to use the system that we used to get them in to also vote them out when the time comes. Nobody is a fool. Is this how to use power?", she asked rhetorically.

In his own contribution, a paint seller at Ita- Amodu area of Ilorin, Johnson Oyewale, "I heard them on radio and television on their propaganda on the tax thing. What of all the money they have been collecting all these years. They should have a rethink ‎because the economic climate in the country does not allow for any such measure now. It is insensitive on the part of government

But, defending the state government’s position on the planned new revenue generation regime in the state, the Senior Special Assistant on Media and Communications to Governor Ahmed, Dr. Muideen Akorede said, “ the tax regime was not entirely a new revenue generation drive, added that it was part of measures to shore up the internally generated revenue accruable to the coffers of the state government”..

Akorede who spoke on one  of the private radio stations in Ilorin last week to defend the planned introduction of revenue generation regime , said,  “the rejuvenated revenue drive was aimed to block all  leakages, wastages and corruption  in the process of revenue generation, added that it would also ensure compliance by all taxable individuals and corporate entities in Kwara”.

While reacting to views and questions put in by callers, who are residents of the state on low performance of the present government since assuming power more than four years ago, the governor's aide explained that the state government had succeeded in completing abandoned projects of the immediate past government and started new ones in areas of urban/rural infrastructural development, education and healthcare.

Akorede noted that, "Part of what we have done is the renovation of five general hospitals in Ilorin, Share, Offa, to bring quality health care closer to the people. We also completed road projects left uncompleted by past government like Zango-Akerebiata, A' Division road etc and started new ones like ...We also built international vocational centre at Ajase Ipo and empower youth in the state. These among other projects we achieved. So, I get amused when I hear some people say this government has done nothing, seriously".

By and large, with the new development in the state on the planned revenue generation drive by the state government, there is urgent need by the government to embark on door-to-door enlightment campaigns among the residents of the state in view of the present economic downturn in the country so as to assist the residents to queue into the move of revenue generation so as to assist the state to move forward otherwise, the collection of these taxes and revenue may likely witness chaos and rejection and this may cause the breaking down of law and order during the period.

Source

 


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