Viewpoint

Enugu’s new revenue regime

GOVERNOR  Ifeanyi Ugwuanyi of Enugu State recently  through the reconstitution of the State Board of Internal Revenue, took a bold step towards a systematic increase in the Internally Generated Revenue (IGR) of the state for the delivery of more dividends of democracy to the people.

This decisive action was  for  two reasons. First, the tenure of the previous Board under the chairmanship of Mr. F.O.C Chime had expired. The second reason  is   in response to the current economic challenges in the country which have drastically reduced the financial earnings of the states in particular and  nation generally.

The reconstituted Board which was made, pursuant to Section 19 (1) of the Finance (Amendment) Law of Enugu State, brought on board men of proven integrity and financial prowess to drive the noble agenda of the state government towards improving on its IGR.

It is worthy of note that the Ugwuanyi’s administration in just a year in office, despite the harsh economic situation, had completed six major road projects while over fifteen development projects are on-going. His administration had also advertised the award of contract for 25 new roads including 3 bridges in the 17 Local Government Areas, as part of the administration’s grassroots development initiatives and the contracts will soon be awarded for execution.

The board appointed a seasoned administrator,  Mr. Chukwuemeka Anthony Odo as Chairman. Mr. Chike Onodugo, Mr. Jude Sunday Egbo, Bar. Joseph Onuoha, and a lawyer, Mrs. Chinasa Perpetual Awkadigwe (who serves as secretary to the board), among others, are members.

Ther reconsituted board has attracted the attention and commendation of the public, especially those conversant with the calibre of persons serving as  members.

For instance, the choice of the new board Chairman, Mr. Odo, was widely viewed by many as a square peg in a square hole, considering his antecedents in finance and business  environment where he rose to become the Executive Director, Corporate and Institutional Banking, Lagos Region, in Intercontinental Bank Plc, now Access Bank .During its inauguration, Ugwuanyi noted that the Internal Revenue Service in the state was crucial to the economic well-being of the government and by extension that of the people of the state,  particularly in the present “days of the severe national economic depression that is threatening the solvency of government at all levels and which is already hindering their operations.”

The governor regretted that the receipts from Federation Account is growing progressively smaller, making it expedient for most state governments to depend on internally generated revenue to fund their activities and service their obligations.

The governor noted that he had envisaged this situation in his inaugural speech when he warned that every revenue-generating agency of the state should be ready to intensify its efforts to generate and remit more revenues to fund government development efforts.

Consequently, he charged members of the newly reconstituted board to raise their performance bar and develop strategies that would achieve a significant and substantial increase in the internally generated revenue of the state.

He equally mandated them to ensure the effective collection of all the revenue accruable to the government as well as checkmate all avenues of leakages and wastages in the process. He stressed that the prevailing economic conditions had caused government to labour tirelessly to “meet its heavy financial commitments and obligations; to pay salaries, fund development projects, ensure social services and maintain security among others.”

The governor called on individuals and corporate bodies in the state not to fail in their obligations to pay their taxes, as defaulters, according to him, “will not be counted as friends of the state”. He reassured “that every Kobo put into the pockets of the government, will be utilised transparently and in a manner that would add value to the lives of the people of Enugu State.”

The new Chairman of the State Board of Internal Revenue, Mr. Odo, who is a member of the Enugu State Economic Advisory Committee, on behalf of other Board members, expressed gratitude to the governor for the confidence reposed in them to serve and assured him that they will explore and exploit all sources of internally generated revenue to ensure that government meets its obligations to the people of the state.

He promised the board would strive to expand the tax net in the state so that every taxable person and organisation will be given the opportunity to perform their civic obligation of paying tax for the government to continue to be at their service.

According to him, “strategies will also be implemented to grow existing non-tax revenues and expand other income sources of government bearing in mind the economic indices of the state as a civil service driven economy.

“We are aware that the state government is in a hurry to deliver more services to the people, through its development agenda, we shall harness all forms of internally generated revenue to ensure that present administration meets its obligations to the citizens.

“Taxation is our collective responsibility. The new Board of Internal Revenue will be driven by the culture of service, team spirit, transparency, accountability and professionalism.”

There  is no doubt that  this strategic vision remains one of the statutory ways out of the current economic quagmire. The onus is therefore, on individuals and corporate organisations to cooperate with the board by ensuring that they fulfill their obligations of paying taxes regularly.

Mr. Louis Amoke,  a journalist, wrote from Enugu, Enugu State.