Tax: Enugu State bans collection of levies and tolls on state highways

The Enugu State Government announced it has banned the collection of levies and tolls on state highways and roads by individuals or groups of individuals acting on behalf of the government.

This was disclosed by the Secretary to the State Government, Prof. Chidiebere Onyia, on Monday in Enugu, as the state becomes the latest government institution to reduce multiple taxation.

Extortion order of the day

The Secretary to the State Government, Prof. Chidiebere Onyia, said the state government noted with displeasure the activities of unapproved individuals on Enugu roads, who have deployed crude tactics to extort monies from vehicles transporting goods, farm produce and livestock in the state.

They added these acts were carried out in the name of the collection of levies and tolls on behalf of the government, citing the anti-business activities of syndicates operating on the state highways and roads as contrary to the current government’s determination to dismantle obstacles to the ease of doing business in the state, adding:

“The current administration of His Excellency, Gov. PeterMbah shall not pay lip service to its stated commitment to expand the Enugu economy sevenfold by promoting economic activities, enabling private sector investments, offering incentives to boost the productive sectors such as agricultural and agro-allied activities in the state.

“Those willing to engage in lawful economic and business activities in our state shall be encouraged to do so as they are beneficial to the state,” he said.
He added the state  government was also taking steps to eliminate multiple and illegal taxation in the state, including collection of taxes and revenues by individuals via cash payments, manual issuance of receipts, and paper tickets.

Onyia said the state government is convinced that tax and revenue collection must be convenient and friendly via technology while addressing leakages, adding:

“Henceforth, anyone caught in the illegal act shall be prosecuted and please be guided accordingly,”

Multiple taxation fights on the Federal level

Nairametrics also reported that the Chairman of the Joint Tax Board (JTB), Mr. Muhammad Nami, said the Federal Government concluded plans to stop taxes on tomatoes and other raw food items as soon as possible.

Nami said ending taxation on the ”non-taxable item” was part of the proposed tax reforms of the President Bola Tinubu-led administration.

Non-taxable goods and services will not be taxed

The JTB Chairman said, “For the informal sector, we do not want goods and services that are not taxable to be taxed.

“We will have an enumeration on the sector to ensure that those that are trading in goods like tomatoes and other raw food items are not made to pay taxes.

“Also, those that are not making up to N25 million will not be allowed to pay Company Tax or Value Added Tax (VAT).’’

End to multiple taxations

Nami also said President Tinubu is also determined to harmonize taxes and end multiple taxation in the country, he said:

“We are lucky to have a new administration that has from day one indicated interest in eliminating multiple taxation.

“The implication is that what we call informal taxes, black taxes or whatever name it is called either at the federal, state or local government levels, will be eliminated.

“This is to encourage investment and to raise revenue generation.

“The move has become necessary because the irony is that the more taxes we have the less revenue we generate.’’