Ben Ezechime, Enugu
Governor Peter Mbah of Enugu State says his administration is working to expand its tax net to include residents who have not been paying taxes.
He said this at the 51st Annual General Meeting of the Enugu Chamber of Commerce, Industry, Mine and Agriculture (ECCIMA), in Enugu.
Mbah, represented by his deputy, Barrister Ifeanyi Ossai, however, acknowledged that there was marginal increase of tax by the state government.
He said: “Part of what we are trying to do is to expand the tax net so that those who have not been paying can start paying something.
“Why we are trying to expand the tax net is to enable everyone to contribute, no matter how little, to create a system that is structured and put everybody in same platform so that investors and investments can come into the state.
“I agree there has been a marginal increase of tax but part of the people we have are those that have benefited from the system when we have lapses.”
Mbah explained that what his administration did was simply to block the loopholes and leakages from those people who had benefitted from the process that had some lacuna.
He added that from what they did, payment of taxes were now seamless and technology driven whereby multiple taxation were eliminated.
The governor said that his administration had removed those who had no business with revenue collection from taking advantage of the system.
According to him, part of the indices that form decision of the multilateral institutions and businesses to invest in a state is about their tax system.
“So a state where most of the people are not making contributions as tax, showed that their economy is not structured.
“With what we did, partners and investments are now coming in to invest in places like Nike Lake Hotel, palm oil; the president coming to inaugurate some of our projects; and we have interested parties in almost all the sectors.
“I sympathise with those who complain about our tax system and as a government, we are willing to listen to those complaints,” he said.
He urged the ECCIMA President, Mr Odeiga Jideonwo, to dialogue with the state government not just about taxation but about all things affecting businesses in the state.
“We need a lot of advice from them to sharpen and having input in our policies and administration efforts to make Enugu a better place for investment and expand their own opportunities to grow and thrive.”
He explained that as business people faced challenges due to subsidy removal that resulted in hike in pump price, government also faced same but prioritised theirs by investing in critical infrastructure to make Enugu business friendly.
Earlier, the ECCIMA President, Jideonwo, praised the consolidated efforts of Enugu State Government to improve the state business environment.
He commended the tax policy of the state government that had brought more people into the tax net of the government, appealing that effort should be made to launch a one stop shop, unified tax payment system for the state.
This, he said, would prevent multiple payment of same tax to the state and local government at the same time.
He urged Mbah to facilitate the opening of the new International Terminal building at the Akanu Ibiam International Airport, Enugu, stressing that the 36th Enugu International Trade Fair would hold on April 4.
The Chairman, ECCIMA Board of Trustee member, Mr Rob Anwatu, decried increase in taxes by the state government, and appealed to it to spread its tax net to accommodate those who had not been paying taxes rather than overburden those paying theirs.
“Last year, daily E-ticket per truck was N1,700 but this year, it has increased to N4,000. I want government to involve us in certain decisions,” he appealed.
