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Why we’re intensifying campaign on effective tax utilization – SIDEC

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By Praise Chinecherem

A Non-Governmental Organization, Social and Integral Development Centre (SIDEC) said it was intensifying efforts towards getting citizens and government to discharge their statutory obligations in the most efficient manner in its bid to ensure taxes, levies and rates were utilized in the best interest of the state.

The visit undertaken under the Tax for Service project was in partnership with the Nigeria Civil Society Situation Room with funding support from of the Foreign and Commonwealth Development Office (FCDO).

It took the team to the ministries of Economic Planning and Budget and that of Commerce and Industry as well as the State Internal Revenue Service, (AiRS) to share the findings of its assessment study of nine sampled markets in the three senatorial districts of the state.

The study was carried out as SIDEC’s noble contribution to on-going efforts to increase the internally generated revenue of the state in the face of dwindling federal allocation.

“SIDEC is a dynamic organization leading the implementation of tax for service project in Anambra State. Its areas of operations include: health, agric, education, infrastructure and sustainable environment,” Ugochi Agalaba-Ehiahuruike, SIDEC’s Executive Director said.

“Tax for service project envisioned a state where tax and levies from citizens are utilized in the most effective manner that will deliver social services to the people. The goal is to reverse the past tradition of tax evasion and diversion or waste of tax payers money by people in authority”.

While arguing that efficient collection and utilization of tax will stimulate voluntary compliance by residents, Agalaba-Ehiahuruike shed further light on the Needs Assessment Study carried out in nine selected major markets across the state. “We have carried out a NEEDS assessment and validated the findings. The goal is to enhance provision of public services in Anambra State”.

“As long as we are encouraging citizens to pay tax, we also want to see services that will work for common good. The current administration is doing well in terms of using the revenue collected from the people to work for them, but it can get better.

“The tax for service project is to promote transparency and accountability in revenue generation and to ensure that the citizens have a good understanding of their tax obligation. We believe that government needs to increase people’s trust”.

She equally stressed the need for the government to address the needs of all the 110 structured markets in the state to encourage the traders to voluntarily pay all statutory charges. “The markets promised us that if government responds to their needs, they will do more than they have done in terms of the amount the generated for the government”.

Responding to the advocacy brief from SIDEC, the Chairman, Anambra Internal Revenue Service, AiRS, Dr Greg Ezeilo, revealed that the state government will soon introduce a digital means of payment christened Anambra Digital Tax Manager, ADTM to eliminate the use of revenue agents and remarkably increase monthly IGR of the state.

Ezeilo said the proposal has been presented to the governor and excos and now awaits approval. “When approved, it will be piloted and when found effective, we are going to launch it before the end of first quarter of 2024. By the time we deploy this technology, as any vehicle gets to the head bridge, there’s camera to take the plate number and checks the driver into the state.

“Our computer officers will stop the driver and ascertain his destination. If it passing through the state to another state, as the vehicle is billed, the card must be funded at all times. So automatically, the card is processed and our tax charging system will charge the vehicle and operator pays.

“This way, we won’t have enforcement agents at the head bridge anymore. When he gets into the market, we have enforcement officers who will attend to him. Just need a smart phone and this card will be given to you the first time you enter this state after it comes into enforcement.

The agency is equally working to streamline all the levies paid by traders into what the chairman calls one general purpose levy. “Right now, they are collecting development levy, haulage levy, fire service, and sanitation across markets, five or six different levies. So, you have a situation where different people come to collect various levies. But we are working intuitively to consolidate all of them into a general purpose levy” so that once you pay, you have paid for everything”.

During the advocacy visit to the Commissioner for Economic Planning and Budget, Mrs Chiamaka Nnake, she maintained that tax payment is a statutory obligation which every citizen should discharge even unconditionally.

“Tax is an obligation. I appreciate the work. We must change the mindset about taxation. You get to pay your tax even when your demands are not met. I am sure you have not seen a lot of frivolities that come with public office in this administration. The marching order from the governor is to use Anambra money for Anambra citizens”.

She appreciated the improvement revealed in the assessment report and expressed optimism that things can only get better. “a major problem with tax and levies in Anambra State is that majority of our people are in the informal sector and it makes it difficult to crack. I see that we are making progress despite all the difficulties. I am happy about that.

“However, I think we need to sustain publicity, education and sensitization. That will help a great deal,” Nnake submitted.

The Commissioner in charge of Ministry of Commerce and Industry, Mr Christian Udechukwu, was particularly concerned to see that a big market like Eke Awka located within the state capital does not have any record of how much revenue was generated from there in the last five years.

“I find it particularly troubling that there was no data whatsoever for Eke Awka. Does that mean that traders there don’t pay all the levies? I still don’t get it. I will definitely take this up,” he promised.

Copies of the Tax for Service Assessment Report were presented to the two commissioners, Mrs Chiamaka Nnake and Mr Christian Udechukwu as well as the chairman of the State Internal Revenue Service, Dr Greg Ezeilo by the SIDEC team.

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