Photos: Pro Land Use Charge Youths Protest in Benin

Some Edo youths gathered this morning at Benin square to protest in support of Edo State Governor, Adams Oshiomhole who have been accused of of enacting a certain levy on the people of Edo State irrespective of their cries.

A civil society under the aegis of Takalawa Parliament had protested on Sunday to show their displeasure in the new Land Use Charge which according them, would bring more suffering to the people of Edo State.

Earlier today, NAIJA CENTER NEWS reported that the governor released N30m to the 18 local government to organize a protest in his support.

In defence, one of the governor’s aides, Victor Oshiomhole denied the allegation, he said “Nobody was paid. These people showing their support for the government of Edo State”

 

Photos: Pro Land Use Charge Youths Protest in Benin

Land Use Charge: Oshiomhole releases N30m to LG chairmen to organize protest in Benin

The State Chapter of the Peoples Democratic Party, PDP has accused the Edo State governor, Comrade Adams Oshiomhole of masterminding a protest that is likely to take place in Benin today (Wednesday)

Governor Oshiomhole

The PDP in a statement released by the state Publicity Secretary Chris Nosa Nehikhare expressed sadness that the governor is wasting scarce resources for unnecessarily things.

According to the inormation, the governor has released N30 million to the to APC party chairmen in the eighten local ogvernment areas to mobilise youth to carry out the protest in the heart of Benin.

The protest is organized to check the successful protest by Edo Civil Society by Takalawa Parliament against the introduction of Land Use Charge, which according to the protesters was a witch hunt to the people who are already struggling to pay previous taxation without anything to show for it.

Mr. Nehikhare said ” Edo PDP has just been reliably informed that Governor Adams Oshiomole and his APC government just released the sum of N30m to APC party chairmen in the eighteen local government areas in the state to mobilize some of the youths it failed to and refused to employ and then stage a protest around Benin City tomorrow Wednesday 11th, 2015.

” We would like to use this medium to advise the governor not to use the scarce state resources for “vendetta” and massage his bruised ego. At this time of imminent economic depression, the governor should adopt a more prudent approach in spending taxpayers money especially when the people have shown that he, as well as his policies have been rejected. He will do well to have a rethink of his style and policies if he wants to warm his way back to the heart Edo people.

“We ask the good people of Edo State, parents as well as youths, to refrain from joining this protest in support of a drowning man. You will be enticed with Edo State money, reject it and ask them to use it to fix our dilapidated roads as well as defray the obnoxious Land Use Charge.

Let him know that Edo state is not for sale! Edo PDP…listening to the cries of Edo People!

Land Use Charge: Oshiomhole releases N30m to LG chairmen to organize protest in Benin

Government Taxation Policy: Adams Oshiomhole’s Government in Perspective

By Victor Oshioke

Tax can be loosely defined as” a compulsory and definite amount levy on adult citizenry of a particular country the collection of which is backed by the statutory provision of a state. A tax is a pecuniary burden laid upon individual or property to support government expenditure. Therefore, a tax is not levied in return for any specific service or services rendered by the government.” (Lekan et al, (2006). Tax according to the National Tax policy for Nigeria is “a monetary charge on a person’s or entity’s income, property or transaction and is usually collected by a defined authority at the federal; and state level.”

Tax

Taxation is one of the first necessities that led to the emergence of government and the organization of society as we know it today. Yet the task of collecting taxes has never been easy. This is clearly demonstrated in the Holy Bible when the Pharisees questioned the holiness of Jesus Christ for having the audacity to sit down at table and eat with tax collectors. Mark 2:16 By implication, Tax collectors were the most vilified, abhorred and loathed public officials from time immemorial. No wonder then that even today, any attempt to introduce, modify or reform any aspects of taxation, no matter how well intentioned and even from the most benevolent, people oriented government, is always resisted at first until the benefits begin to dawn on the populace and the real intentions begin to manifest in terms of verifiable evidence of what taxes collected were used to provide.

Nara Monkam and Mick Moore, in their book “How Property Tax Would Benefit Africa”, argued that:

“The developmental benefits of governments taxing citizens, even for modest sums, are often disregarded. African governments have long depended on revenue from natural resources or foreign aid to fund budgets. While the potential contribution that better domestic resource mobilization could make to national finances has received greater attention since the 2008 global financial crisis, international donors often fail to recall the central role that bargaining over taxation has played in building effective, accountable and responsive states across the developed world. Although never popular, taxation is an essential component of consensual and representative government…Property taxation is widely regarded as highly progressive and equitable because the sum due is determined by wealth rather than being a percentage levy on transactions”

In Nigeria, it is ironic that whereas there is unanimity of opinion that government at all levels should strive to generate revenue internally and depend less on oil based federal allocations, opinion is sharply divided each time a government, especially at state and local government levels, resort to the most reliable avenue to generate revenue internally which is through taxation. Even more confounding is the fact that commentators who utilize every available opportunity on morning talk shows, to call on government to be more aggressive in generating internal revenue are the same commentators, who utilize the same space, to denounce government, whenever attempt is made to enhance IGR through taxation.

Since Adams Oshiomhole became governor, Edo state has not introduced any form of taxation that is not consistent with the peculiar circumstances of the state. This is in spite of dwindling resources which has compelled some state governments to introduce unconventional forms of levies, duties and fines in a desperate attempt to boost IGR.

The Land Use Charge 2012, which is just now being implemented in the state, is well in tandem with the

TAXES AND LEVIES (APPROVED LIST FOR COLLECTION) ACT, CAP.T2, LAWS OF THE FEDERATION OF NIGERIA, 2004, amended as:

”SCHEDULE TO THE TAXES AND LEVIES (APPROVED LIST FOR COLLECTION) ACT (AMMENDMENT) ORDER, 2015” Official Gazette No. 77 Vol. 102 of 9th June 2015, duly signed by Dr. Mrs. Ngozi Okonjo-Iweala, OFR, as Coordinating Minister of the Economy and Minister of Finance.

Part 11 of the Schedule to the principal Act was amended by Substituting the existing item 7 with a new item 7 as follows

“7. Business premises registration in respect of urban and rural areas which include registration fees and per annum renewals as fixed by each state “and

b) Inserting immediately after the existing item 11, new item 12 to 25 as follows

“12. Land use charge, where applicable;

13. Hotel, Restaurant or Event Center Consumption Tax, where applicable;

14. Entertainment Tax, where applicable;

15. Enviromental (Ecological) fee or levy, where applicable;

16. Mining, Milling and Quarrying fee, where applicable;

17. Animal Trade Tax, where applicable;

18. Produce Sales Tax, where applicable;

19. Slaughter and Abattoir Fees, where State Finance is involved;

20. Infrastructure Maintenance Charge or Levy, where applicable;

21. Fire Service Charge,

22. Property Tax, where applicable;

23. Economic Development Levy where applicable;

24. Social Services Contribution Levy where applicable; and

25. Signages and Mobile Advertisement jointly collected by States and Local Governments”

I have taken the pains to list out these charges and levies approved by the Federal government, to underscore the point that Edo State Government did not arbitrarily introduce Land Use Charge. As a matter of fact, there are numerous taxes, charges and levies, which are veritable sources of IGR and implemented in other states of the federation, but which the Edo State government has overlooked because of the likely effects they will have on the common man.

The Edo State Land Use Charge 2012, is a progressive tax initiative in line with modern reforms geared toward making the wealthy in society contribute a fair share to help provide amenities for the communities where in most cases they generate their wealth. The Law adequately makes provisions to exempt the vulnerable in society. It excludes palaces, places of worship, properties of senior citizens, premises used for charitable causes, family compounds within appreciable space, and reserves a latitude for the governor to consider a property for exemption

Available statistics show that civil servants pay their fair share of taxes commensurate with their income through the PAYE system. The wealthy, self employed business persons on the other hand have perfected ways and means to evade paying their fair share of taxes though official declaration of losses, even when they spend billions in acquiring exotic cars and properties in choice areas of the state. With the land use charge, at least they will be compelled to pay a fair share of taxes for their physical properties which can be assessed and appropriately taxed.

There can be no fairness in a system where a property in GRA Benin City, with a yearly rent of N500, 000 per 3 bedroom flat pays the same tenement rate as a property in Ekenwhuan road which goes for N120,000 per 3 bedroom flat?

It also makes no economic sense for someone to own multiple properties in choice areas of an urban community and end up paying nothing to the government nor contribute to the development of the host community. As stakeholders in the Edo project, there should be a paradigm shift in the parameters of discussion on how best to move this State forward, It is my opinion that the discussion at this point should be centered on how to ensure consistent assessment and valuation, accountability and judicious use of the increased IGR which will emanate from the Land Use Charge.

Our society will be better served when we see ourselves as partners in the development project. It is time we see our state as a comparative society where we all pay our taxes which is in turn used for the benefit of all. Federal allocation will then become a bonus which can be invested in capital projects for the benefit of our children.

The goal of every responsible government should be to generate enough revenue internally to meet its recurrent expenditures. Anything short of that vision will amount to perpetuating economic stagnation. Our own duty is to live up to expectations as responsible citizens by paying our taxes irrespective of our objections to the logic of such taxes, because in the final analysis, the Edo State land Use Charge is backed by law and anyone who does not pay the charge becomes a law breaker.

In line with international best practices, there is right of appeal for charges imposed, and incentive in the form of 10% discount for those who pay up without delay. What else can one ask for in terms of a humane, considerate and modern tax regime?

We are in an election season and naturally, the polity is tense. Opposition politicians are apt to try discrediting government policies no matter how good intentioned they are. But a responsible government will make policies that will ultimately better the lives of citizens, no matter how unpopular those policies might be in the short run. The Edo State Land Use Charge is a good initiative whose benefits transcends political calculations and positions the state for a great leap into a secured economic future. Amongst other, anticipated benefits of the Property tax include:

1) Increased IGR to be invested in the development of Edo State

2) With increased IGR, the state will become more credit worthy and can borrow money for capital projects

3) Wealthy people will be more interested in charity activities since by giving some of their properties for charitable causes, like Motherless Children’s Homes, accommodation for homeless people, widows quarters etc. such premises will qualify to apply for exemption from the land use charge.

4) There will be a reduced interest in land speculation. Benin City for instance is one of the fastest growing metropolises in Nigeria. This has opened the floodgate for wealthy land speculators to buy lands in fast developing areas like Ugbor, Amagba etc, and leave the land fallow for a few years. This drives up the price of land in such areas and within a span of 5 to 10 years the value of the land appreciates from between 300 to 500%

5) There will be fewer abandoned premises which make areas like GRA an eyesore

6) There will be more land available for purchase in choice areas for people who genuinely want to build houses as opposed to those who already have good residential houses but simply want to acquire more land.

Victor Oshioke

Government Taxation Policy: Adams Oshiomhole’s Government in Perspective

TAXATION: Crucial To Development in Edo State - EIRS Boss

For a struggling economy like Nigeria, the taxation system has been described as a crucial requirement for meeting the developmental yearnings of the people, especially the down trodden.

Executive Chairman of Edo State Internal Revenue Service (EIRS), Chief (Sir) Oseni Elamah gave this indication as a guest lecturer during the Law Week organised in Benin City by the Nigeria Bar Association (NBA), Benin Branch.

Chief Elamah who delivered his lecture on the topic. “Taxation in Nigeria, its Implication for Nationhood: Prospect and Challenges”, said the state EIRS was able to brave all odds to achieve its success geared towards the betterment of the people as evident across the nooks and crannies of the state.

This, he attributed to the political will demonstrated by the state governor, Comrade Adams Oshiomhole.

According to Elamah, since inception Nigeria’s independent, tax administration has played a vital role towards the nation’s development, with the promulgation of the Income Tax Management Act (ITMA) in 1961, which was repealed by the personal Income Tax Act, Decree 104 of 1993.

On taxation as an implication towards nation building, the EIRS boss noted that the recent unprecedented economic crisis witnessed a shift from the overdependence on the oil sector which necessitated the need for the country to seek alternative and sustainable means of revenue generation with a view to addressing the numerous socio-infrastructural challenges facing the people.

This, Chief Elamah said, as evident in Edo State, could be done through the promotion of fiscal responsibility/accountability, economic stability, wealth creation/employment and equality before the various tax laws.

He asserted that the state governor, comrade Adams Oshiomhole’s led administration is committed to running a peoples participatory, result oriented and responsive government.

He posited; “We can categorically state that the Governor Adams Oshiomhole’s led administration has re-positioned the internal revenue service built on professionalism, transparency , integrity and value for money to enable the government optimize its internally generated revenue for the provision of basic amenities and infrastructures.

Chief Elamah however canvassed that the revenue/tax generation should be utilized towards meeting the maximum potentials as a catalogue for nation’s building.

Meanwhile, the chairman of the Institute of Taxation of Nigeria (CITN), Benin District and Society, Dominic Eichie has described taxation as the only vital source that can emancipate a responsive and even development of any developing nation.

Eichie stated this when he led the new executive of the CITN on a courtesy visit to the Executive Chairman of the Edo State Internal Revenue Service, Chief Oseni Elamah in Benin City.

Eichie stated that the visit was to specifically appraise the phenomenal achievements of the Executive Chairman, his support towards the CITN through the EIRS staff participation in the CITN’s activities as well as to encourage him on his good work towards the development of the state.

He noted that Chief Elamah’s quest to encouraging EIRS staff towards participating in the CITN programmes with a view to gaining tax knowledge has helped to broading the institute and the operations of the EIRS agency.

Responding, Chief (Sir) Oseni Elamah who noted that tax was as old ad mankind attributed the EIRS success story to the state governor, Comrade Adams Oshiomhole who provided the necessary political will.

On assumption of office, he said his administration focused on building the internal capacity with the purpose of ensuring professionalism that would ensure accountability, honesty, integrity and value for taxpayers money, he added, culminated in the establishment of the premium tax training school of the agency.

The EIRS boss stated that he has been partnering with stakeholders in the state with a view to creating the necessary tax awareness amongst them.

According to him, the filing of annual return was important, urging taxpayers to file in their returns as that would guarantee them the right on tax related matters.

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TAXATION: Crucial To Development in Edo State - EIRS Boss