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Only 200,000 people pay taxes in Anambra State

Onome Ohwovoriole by Onome Ohwovoriole
June 6, 2017
in Business News
Recession: Anambra State Cuts Taxes On Citizens, Injects Economic Stimulus 
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Executive Chairman of the Anambra State Internal Revenue Service (AIRS) Mr Achike Emejulu recently said only 200,000 people pay tax on the state. For a state with an estimated population of 4 million renowned for commerce and industry, the figure should be much higher. The revenue body has its work cut out. Hence the recent clamp down on corporate bodies that are owing taxes.

Many states in the country are heavily dependent on FAAC allocations composed mainly of crude oil proceeds and VAT collections. A drop in both crude oil prices and the volume of oil produced in the country, led to a drop in FAAC allocations. Many states were left stranded, unable to pay salaries or execute capital projects, resulting in the Federal Government bailing them out. Anambra seems keen on moving away from that.

In order to increase tax revenue, the AIRS has to make the process of paying easier. It can follow the footsteps of the Federal government which has made tax payment electronic and has created a portal in the Corporate Affairs Commission (CAC) website so such payments can be made directly.

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The government should also consider waivers for those with large arrears. That will encourage debtors to come forward. Shutting down tax defaulters is an extreme measure that punishes the junior employees who live on daily wages. The harsh economic climate in the country has left many companies struggling to stay afloat. The state can also embark on enlightenment campaigns using popular celebrities on the need to pay taxes.

Above all, the government must be transparent in how it uses revenue from tax. How much was collected as taxes last year and what was the money spent on? People shy away from paying taxes because they believe tax revenues are not well spent.

 

Onome Ohwovoriole

Onome Ohwovoriole

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

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Comments 1

  1. Anodebenze says:
    June 7, 2017 at 4:12 pm

    Anambra State,my home state,home to two major commercial centre Onitsha and nnewi.home to several money-missed-road like emeka offor of chrome company.arthur eze and many are prominent politician.nnamdi azikiwe.alex ekwueme.ojukwu,if I forget from memory anambra state have a population of about 3 million.
    How can this govt get more revenue from taxes ?there are many ways to kill the rat,you can trap the rat,you can poison the rat,you can buy a cat that feeds on at rat.no offence a tax can be a millstone on taxpayers and govt.which way for anambra state ?they can squeezes money maybe through for the the state govt increase the trust and interacting between the citizens and the govt.let the govt feels the human as personal touch that is universal,seconly eases the business of doing enterprises in anambra state,working in cojuction with various local govt area,maybe increases taxes on the riches or give incentive to anambraians outside the state,and I think it’s good reasons everybody go to their tent as the arewa youth have give ultimate to Igbo traders in north Nigeria to leave north Nigeria,which I think it’s good news for the indigbo,to come home and rebuilt their village ad hometow so we can get the respect in Nigeria.we have to do the right in Nigeria for Nigeria.if the fed govt have not done enough to protect it’s citizens,or make it’s people happy or give us an equal and fair Nigeria,where we reward honest and hardworking if mohammed says Koran is the words of god,it is to himself and his follower,if jesus Christ is the only son of god,jesus Christ have to prove himself to me,as I doubt he is god or divine.we can kiss Nigeria bye bye.look at singapone,

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