News

December 21, 2011

Umuahia residents groan under multiple taxation

Umuahia—Residents of Umuahia, the capital of Abia State, have expressed worry over incidences of multiple taxation and levies charged them by government agencies and ministries.

The state government in its bid to shore-up its internally generated revenue had intensified efforts in the implementation of sundry charges on business premises and residential buildings.

Some of those charges, which include ASEPA, business premises, desilting levy, infrastructural levy and local government levy, are collected by consultants on behalf of government.

Each building under the physically planning and infrastructural development levy is expected to pay between N10, 000 and N20, 000 depending on its nature.

Mr Ubani Kalu said the activities of the government amounted to double taxation “because it is expected that once you pay property rate, no other charge will be required.

“What is, however, embarrassing is the method of collecting these funds. You see these consultants harassing residents with uniformed men.

“In the past few days, so many shops were closed due to the magnitude of the harassment.’’

He described some policies of the government as anti-people aimed at impoverishing the masses.

Kalu said several levies charged them were not justified.

A shop operator at Umu Agu, a suburban community in Umuahia said in anonymity that the business climate in the state was no longer friendly.

The shop operator said that she had been forced to pay more than N7, 000 in the midst of threats of prosecution for a little shop she occupied in the community.

Efforts to get the Chairman of the Abia Physical Planning and Infrastructural Development Funds proved abortive as the security man at the office complex said he was out of town.

However, the state government had indicated willingness to streamline activities of the several consultants that posed as government agents.

Mr Don Ubani, Commissioner for Information and Strategy, told newsmen that some of the consultants were not recognised by government.

Ubani said that the state government would soon make public the names of consultants that would be collected levies.

….As Abia budgets N122.4bn for 2012
BY ANAYO OKOLI
UMUAHIA—GOVERNOR Theodore Orji of Abia State has presented before the State House of Assembly the 2012 budget of N122.4 billion, christened “Budget of Transformation”, which he said would stimulate economic growth and development of the state.

The budget, which represents an increase of 16.4 percent over that of 2011 of N105.1 billion, according to Governor Orji, was carefully packaged to achieve a strong, diversified and competitive  economy that should provide hope for the hopeless, jobs for the unemployed and peace for sustainable development.

The governor also expressed hope that the revenue accruable to the state would remarkably increase due to anticipated favourable review of the revenue sharing formula of the Federal Government and expected improvement in the collection of IGR and measures introduced by reforms in the finances of the state.

He also assured that “concerted efforts would be made to improve on our Internally Generated Revenue”.

To this end, he announced that some consultants had been engaged to enable the government restructure the systems of revenue collection.

“It is our belief that the efforts we have made here, would assist us boost the level of our internally generated revenue.

“Our revenue projection for this year from Internal sources is N22, 202,318,470”. Also, “with the relatively high oil price in the international market and the peace in the Niger Delta area, we expect considerable increase in revenue from the Federation Account,” the governor said.

Orji announced that the government’s projection was N58.9 billion from statutory allocation of the Federation Account to service the budget, while, N9 billion would be expected from Derivation Fund, as well as N10 billion from Value Added Tax, VAT, and other sources in 2012.

A breakdown of the budget showed that recurrent expenditure is N56.997 billion, which represents 24.8% against 2011 figure of N45, 654,833,770.

Presenting the budget before the House members, the governor told them that “this budget proposal is anchored on our desire to consolidate on the major achievements of our administration in previous years and to ensure that our success in transforming our state into an investors’ destination; a place of innovative governance and a land where opportunities will be achieved, is sustained”.

According to him, “it is our resolve to transform Abia State into a prosperous state that would guarantee equal opportunities and high standard of living for our people.”