Dateline: 28/2/2016 (BOOSTING IGR IN DELTA)

An appropriate tax culture is considered a necessity for economic growth of any country, and in our own case, especially so in the face of dwindling earnings from crude oil. Unlike some parts of the world where most economically active persons, be they human or corporate, pays some form of tax on a regular basis, taxes are only collected from relatively few Nigerians, as well as a handful of businesses by largely inadequately resourced revenue collecting agencies of government. Many argue that this reality contributes to a lack of political accountability on the part of officials and consequently, diminishes the impact of democracy on average Nigerians.

Equally important is the fact that this lack of a formal tax infrastructure means that the overwhelming majority of state and local governments overly rely on centrally collected revenue for their income with the resultant reality of a paucity of badly needed funds to cater to citizens’ needs. It is against this backdrop that it is commendable that the Senator Ifeanyi Okowa led administration in Delta State, conscious of the fact that His Excellency is saddled with truly daunting challenges and enormous expectations, has responded positively to the current economic reality by embracing new approaches to taxation through the deployment of new technologies by well-trained professionals in order to drive enhanced Internally Generated Revenue for multifaceted economic growth.

The Governor, who recently held an interactive session with informal sector groups in Asaba, observed that payment of tax is the civic responsibility of all citizens, stating that all citizens should see payment of tax not as a witch-hunt but a civic responsibility they are obligated to discharge, hence the need to capture all citizens of tax paying capacity into the tax net including participants in the informal sector for the overall purpose of improving the state’s revenue base.

Senator Okowa, especially, decried a situation in which individuals, especially wealthy Deltans, pay little or no tax. He further faulted the practice of under assessment of already captured financially able individuals who currently do not pay taxes that are commensurate with their incomes and assets, stating that his administration is determined to reverse the trend. The Governor, who had hitherto explained that apart from the formal sector, chiefly civil servants, most informal sector members pay little or no tax to the state promising to ensure that all Deltans pay taxes commensurate with their financial wherewithal.

Okowa, who expressed concern that taxation is yet to be given its right place in the economic scheme of things, especially in helping to ensure the growth of the local economy, unveiled the Resident Card that would be issued to each taxpayer. He assured the various informal groups that the state government would partner with them in the collection and utilization of the tax, explaining that the resident card will enable the taxpayers to be identified as responsible Deltans and thus entitled to benefit from various government programs such as microcredit, job creation, health insurance as well as bursary and scholarship schemes.

The Governor assured the people of the state that new taxation approaches would not translate into additional tax burden on the people, adding that the operations of the newly introduced Resident Card would be benchmarked against utmost best practices.

As a student of economics, two reasons provide optimism that the Governor is indeed adequately addressing the issue of ownership that develops when individuals pay taxes and can voice their opinion on how their money is spent. The first is the development of a state tax culture that will likely embolden and empower citizens thus increasing the benefits of democracy and improving the political system. Also in his quest to bring development to the doorsteps of Deltans, the Governor has cut down on the cost of governance in the state starting from his office, thus helping the state government to carry on with ever more people-oriented programs.

The Senator Ifeanyi Okowa administration has so far succeeded in blocking some of the revenue leakages, hitherto the bane of development financing in the state thus earning the confidence and trust of Deltans, who are increasingly beginning to enjoy commensurate returns in form of the ongoing provision of social services and developmental projects, thus ensuring value for taxpayers’ money.

Increasing internally generated revenue is undoubtedly the way forward for all governments at all tiers in the federation. It has become imperative to ask for the understanding and support of all Deltans to pay all due taxes for the purpose of provision of infrastructure across the state. Deltans, no matter their political persuasion, should support the state revenue drive in order for the state government to take development to all nooks and crannies of the state.

This administration from inception had envisaged that an effective and efficient tax system is a prerequisite for optimal governmental performance and is already proving this with what little it is presently able to generate. Taxation is therefore key to democratic sustainability and impactful economic development, two broad categories of genuine progress on all fours with Governor Okowa’s S.M.A.R.T. Agenda in line with the Prosperity for all Deltans mantra of his administration.

Michael Tidi
Special Assistant on News Media to Governor Okowa