Tax matters: As Kwara bends rules for non-indigenes

Date: 2017-01-27

Nigerians have been made to understand that tax administration, collection and applications are inevitable to ensure effective growth and development of the country.

With the reality of the present harsh socioeconomic climate caused by fall in global price of crude oil, the monthly federal allocation to states from the federation account became dwindled and thus governments at various levels have kept struggling to meet up with their daily obligations.

The Lagos State government took the bull by the horn by reinvigorating tax administration and collection among individuals and corporate organisations, just as other state governments have followed suit in an attempt to ensure effective provision of infrastructure and public service.

At a breakfast meeting, organised by the Kwara State Internal Revenue Service (KWIRS) with high net worth individuals and corporate organisations in Ilorin, Governor Abdulfatah Ahmed emphasised that a strong tax regime is necessary for the attainment of socio-economic growth, urging all business owners and residents within the tax net to pay their taxes regularly.

The governor, who said that societies can only move forward when they have a proper tax collection and management system, added that his administration would continue to judiciously use tax revenue internally generated for infrastructure, socioeconomic and other people-oriented programmes.

And to further encourage effective participation of business community, which include both indigenes and non indigenes in the state, the Kwara State governor has advocated adoption of use of state of residence as against issue of state of origin being practised in states of the federation, saying this would aid better socioeconomic growth and development.

The governor said that his administration would review the practice in the state to guard against perceived discrimination and create equal platform for both indigenes and non-indigenes in the obligations and rights they are entitled to.

The governor, who was reacting to comments by individuals and corporate organisations on perceived discrimination in terms of tuition fees and others against non-indigenes at the event, noted that discrimination could discourage payment of tax in the state, and assured that his administration would put an end to such with the planned review.

He said that there should be no discrimination in the levies payable by residents in the state who pay same tax irrespective of their states of origin.

Governor Ahmed, who emphasised that there was no option to payment of tax by individuals and corporate organisations, added that all tiers of governments in the country are finding it increasingly difficult to pay workers salary and wages at all levels because revenue from crude oil can no longer support the nation’s economy.

The governor who said that the federation allocation was not meant for salary payment alone, added that there was the need to invigorate tax administration, applications and collection to improve the society.

He said that his administration had no other option than to intensify efforts in tax administration, applications and collection from corporate bodies and individuals in the state, adding that no state government in the country could cope with federation account alone.

While highlighting his administration’s policies and programmes, Governor Ahmed noted that the state government is working round the clock to bridge the infrastructure deficit across the state.

He said his administration’s determination to reduce the infrastructural gap in the state led to the establishment of Kwara Infrastructural Development Fund (IF-K), which according to him provides a reliable funding capital projects through tax revenue.

Also speaking, the KWIRS chairman, Dr. Muritala Awodun, disclosed that the revenue service generated about N17.4billion in 2016 as against N7.2billion generated by the state in 2015, saying that the agency would continue to be efficient in tax collection process in the state.

He  then called for support and understanding of the public, saying that government had responsibilities of providing public services and infrastructure that must be adequately funded.

Dr Awodun, who explained roles of tax consultants engaged by the agency to carry out complementary tax administration and audit in many parts of the state to the business community, warned that no one should induce the consultants with money.

The revenue service boss, thus, appealed to the people of the state to submit themselves to tax audit management as a way of improving the internally generated revenue of the state.

While tasking the HNI and other corporate organisations to improve upon their corporate responsibilities and proper documentation for easy tax collection process, he assured that government would make judicious use of collected revenues for masses-oriented projects and programmes.

Some speakers at the meeting were in agreement with the state governor’s request on the need for prompt payment of tax but requested government intervention on the mode of operation of KWIRS staff and utilization of revenue for the public good.

The breakfast meeting was attended by captains of industries, ex-government functionaries and traditional rulers where they ventilated their minds on the management of the state resources.

Stakeholders at the meeting also took both the government and the revenue service up complaining about the operational mode of KWIRS.

They complained about lack of infrastructures to justify the billions of naira government had realised through the new tax regime.

Source

 


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