NewsAbia: Govt, Opposition Forces Gear Up For Show  Down Over Tax Defaulters

Abia: Govt, Opposition Forces Gear Up For Show  Down Over Tax Defaulters

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By Daniel Maduka

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Baring any last minute mutual understanding,  the Labour Party LP controlled Abia State Government appears headed on a collision course ,with some  forces notably, rents/ taxes defaulters, strongly believed in Government circles as being goaded by perceived opposition elements.

The Source News Magazine reports that at inception late May 2023 , the Dr Alex Otti-led adminstration, worried about the poor internally generated revenues of the hugely endowed, oil rich and commercial state said to have been occasioned by a loose revenue collection system, had embarked on  rent/ tax harmonization exercise .

UBA

The exercise ostensibly muted to block leakages ,as well as prevent government revenues going in to private pockets as it has been the norm in the last few years,created two major tax payments modules- namely daily and yearly.

According to the harmonization laws , those within the daily payments bracket are to pay between # 250 and #300. While the yearly payments which captures Market stall owners, and other small scale enterprises are to pay about #19 000.annually.

However,findings have revealed abysmal compliance by taxable individuals and business entities since the coming on board of the current regime in the state ,despite several appeals by all relevant authorities.

The government it does appear is no longer finding the situation funny ,as impeccable sources have said that it is now set to go tough on defaulters and their perceived sponsors.

It was authoritatively gathered last week that the government,s resolve to adopt a tough approach in the revenue collection efforts is informed by information at its disposal suggesting that some unseen political forces may be behind the unwillingness of most of the defaulters to fulfill their civic obligations to the state .

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While such perceptions may appear untenable to some people, not a few particularly keen followers of  the hitheto poor revenue collection system which had been in  place before now will readily align with  it.

For one, over the years revenue collection had been contracted out to Consultants, usually drawn from the pool of political allies and cronnies as a settlement measure.

Instructively , the Revenue- collection-for – Political settlements have been at the root of the perennial shortfalls in the internally generated revenues projections of the state ,as over 60% of revenue receipts find their way into private pockets.

Notice of government’s intentions to enforce collection was served late last year by the state’s Board of Internal Revenue BIR .

In a letter addressed to all security arms in the stated dated November 20,2023 ,Professor Ogbonnaya Udochukwu Executive Chairman Abia state BIR appealed for the understanding and support of the security agencies in the    authorities, determination to enforce collections of its statutory revenues .

The enforcement efforts which were initially scheduled to commence second week of December last week was  put on hold to allow the defaulters to conduct a hitch free festive business activities.

But reinforcing government’s  determination to go ahead with the enforcement ,the state Commissioner of Information Prince Okey Kalu at a media briefing mid December last year  warned that government will stop at nothing to collect all statutory revenues due it ,in 2024.

He stressed that the Government will  not be able to deliver on its responsibilities if the people continue to shy away from their civic obligations .

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An authoritative source has revealed that Government is greatly miffed by available intelligence at its  disposal high lighting the negative roles  allegedly being played by some opposition forces in discouraging and sabotaging the revenue collection exercise with a view to frustrating its efforts at re engeernering the state.

“We are aware that some forces who took the state on many years of retrogressive journey,particularly those  who before now had been feeding fat through revenue collection contracts, are out to sabotage the efforts of the authorities,aiming to bring back the old order.

The underlying intintention are to ensure that government is denied the necessary  funds,frustrate the system and thereafter go to town to mouth that the government has failed.

It is a grand plot not only to frustrate and discredit the state government ,but  also Labour party as a whole.

But we are equal to the challenge,because no body can stop the march towards retrieving  Abia from the precipice. We are therefore appealing to the people to show understanding and support the government in the little areas they  required by extant laws and shun being used by some yesterday dark forces to derail the system.”. the source stated

Already,The Source News Magazine’s findings have revealed that the short falls in the internally generated revenue projections is already taking its toll on the abilities of the government to meet some essential parts of its electioneering promises to the people.

One of such was the promise to off set before December 2023 ending several months of backlog of salaries and pensions inherited from previous regimes.

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But in his New year message January 1 2024 ,Dr Otti was to apologize for his government to fulfill his earlier promise.

He blamed the situation on the overwhelming nature of the amount involved ,as against earlier projections .

Although that as at the time of reporting on Tuesday January 9 2024, none of ever vociferous opposition forces ,particularly the Peoples Democratic Party PDP could volunteer an open response, they however advised the government to admit and apologize to the people over his lackluster performance so far ,instead of embarking on wide goose chase of shopping for non existent political enemies.

“If you ask me , my simple response is and will continue to be that our Governor is his own worst enemy. His government is faltering because he is not driven by genuine intentions.

A system was in place which he inherited .Instead of standing on the existing protocol before effecting changes ,they threw away everything, and turned   round to apportion blames .And like former Governor TA Orji once said – Otti should carry his cross” a PDP chieftain stated

Although, the lone LP Governor has promised end of the first quarter if the year as the new date , how he finally grapple with the situation will have a far reaching implications on public perceptions of his fledging regime .


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