Government and Tax Collection: A Case Study Of The Adams Oshiomhole Government

BY DANIEL OSA-OGBEGIE, ESQ.

The first need of any modern government is to generate enough revenue, without which it would not survive another day. Thus taxation is by far the most significant source of revenue for the government. Nigerians regard payment of tax as a means whereby government raises revenue at the expense of their sweat.

Governor Oshiomhole

It is good to note that no tax succeeds without the taxpayer’s co-operation. Here, we can ask some thought-provoking questions such as: what makes taxation such a difficult issue? Why do people feel cheated when it comes to tax? Is government making judicious use of taxpayer’s money?

To elicit voluntary compliance, the government should be more responsive to the welfare needs of the citizens. The Nigerian cum Edo tax system can effectively generate more revenue when the citizens have trust and confidence in the Government.

There is a need to enhance a positive tax culture; this can be done through the re-branding efforts of the ministry of information.  In most developed countries, tax payment is considered a moral and civic responsibility, thus tax avoidance is frowned upon. This implies that our leaders should demonstrate patriotism through leadership that is worthy of emulation by timely payment of their taxes and discharging other civic duties. Government cannot continue to shout down on the people to pay tax, the way Oshiomhole does, just because he could use the instrument of State to intimidate and pummel the people to submission.

The current determination of the Oshiomole government to implement the Land Use charge Law, and it’s defiant and autocratic move that had it “secure” a court order against 60 persons for the confiscation of the Property even when there was a pending matter before the Court show a government at war with its own people, unfortunately.

It is clear that only Local Government Councils can Constitutionally collect tenement rates, and tenement rate is part and parcel of the Land Use Charge Law.

For any Society to grow, the focus must be on building capacity, leadership,entrepreneurship and public institutions to create orderliness and empathetic governance. The Edo State Government uses touts and marauders to collect taxes from decent and hardworking members of the society, instead of devising the correct technology and any business innovation that would ensure orderly payment of tax.

I have always believed there was a point which the government and the people can both win; that point of intersection between the Government and the governed where they can both work together to create win/win situations most of the times. It seems to me that in Edo State, this may be far fetched!

The Adams Oshiomhole Government has not sufficiently shown to understand this point of intersection between the government and the people. The intersection goes far beyond the numerous platitudes and filibustering, masquerading as populism he constantly indulges in. It is simply about empathy and integrity.

The primary source of Government revenue in Nigeria has been crude oil for more than 45 years now. One would expect that a Government that suddenly intends to make taxes, rates, fees etc from its people the main source of its revenue, would first create the enabling environment for the people to be economically empowered by setting up incentives that would increase direct investments in the State, ensure security of lives and business, cut waste and leakages in government. The Edo Governor hs done none of these.

For sometime now, the Edo Governor Mr. Adams Oshiomhole has been frantically going round to source revenue in rather suspicious ways. Some of us have not been impressed. Infact I have been very annoyed as the Edo Governor’s tactics of raising internally generated revenue have been to put more and more tax burden on the Edo people even when Government has not first created that enabling business and social environment for the people to be economically empowered.

Furthermore, it is my contention that the people cannot be made to pay for the profligacy and financial recklessness of government.

To the carpenter, the solution to everything is a hammer. It is wrong for Edo State Governor to think the only way he can shore up the Government revenue is to impose more taxes, levies, fees and charges on the people. This for me, bothers on intellectual lassitude of those in Government. You don’t overburden a people already held down by Government inflicted economic depression by imposing more taxes, fees, rates, charges that they don’t have any means whatsoever to pay. You will call for insurrection when you do that. People cannot see you living in so much affluence courtesy of your position in Government, and agree to make sacrifices. You cannot expect the people to continue to subsidise you, then bear the brunt of your profligacy. If the Government is broke, instead of trying to milk the people, the Governor, Deputy, Commissioners, Advisers etc should cut their expenses, cut their salaries and allowances, cut down their fleet of official and private vehicles, cut down the Parties they organise, cut down the money they lavish on their girl friends and others, and most importantly, reduce the number of State Universities to one. No State Government can survive managing three Universities, and I don’t think there’s anywhere in the world this has ever happend. Thank you for reading.

Daniel Osa-Ogbegie is a Benin based Lawyer

Government and Tax Collection: A Case Study Of The Adams Oshiomhole Government