Rédaction Africa Links 24 with Guardian Nigeria
Published on 2024-03-05 04:08:10
Payment of taxes in Enugu State has become a contentious issue since the current administration decided to review the rates and bolster enforcement efforts to increase revenue. This has led to widespread discussions among residents, with some admitting to evading taxes while others struggle to meet their obligations, affecting their businesses.
Past administrations in the state had paid little attention to tax collection, leading to widespread evasion. However, Governor Peter Mbah has prioritized improving revenue earnings for the state, emphasizing the need for residents to pay their taxes. To achieve this, the government implemented an e-ticketing scheme for the collection of consolidated taxes and levies, replacing revenue agents that lined the streets.
Under the new system, informal sector businesses are required to pay an annual fee of N18,000 for presumptive tax, renewal of business premises, and local government levies. Additionally, transportation operators, hotel services, media operators, and rural dwellers are also subjected to new tax regulations. The government has also initiated a five-year tax audit exercise for companies in the state, with demands being made for payments based on “best of judgment assessment.”
The increased tax demands have led to backlash from residents and businesses, with some expressing concerns about the impact on their operations. Enugu State Tax Reform Team and other organizations have called on the government to review and reduce taxes to alleviate the burden on traders, especially in light of economic challenges affecting sales.
The enforcement of tax compliance has led to the closure of markets and businesses that have failed to pay the required taxes. Traders have raised objections, citing the high cost of living and heavy tax burden as reasons for non-payment. Some have appealed to the government to reconsider the tax order and conduct proper assessments to ensure fairness in taxation.
Overall, the government’s efforts to increase revenue through tax collection have sparked debates and controversies in Enugu State. While taxation is necessary for development and public services, it is crucial for the government to consider the impact on residents and businesses, especially in challenging economic times. Collaboration and dialogue between the government and stakeholders are essential to address concerns and ensure a fair and equitable tax system for all.
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