The executive Governor of Benue State His Excellency, Governor Hyacinth Alia has declared support for the tax reform bill of President Bola Ahmed Tinubu.

Governor Hyacinth Alia declared support for the president’s tax reform bill on Wednesday while briefing News men in His office at the state secretariat in Makurdi, the state capital.

Speaking through the finance commissioner, Michael Oglegba, Governor Hyacinth explained that tax Laws are into four (4) different components but the area that has raised contention from the people is the area of VAT which the federal Government has proposed should be increased to 10% from 7.5%. The governors opposed insisting it should maintain at 7.5% in consideration of the hardship dwelling on the people in the country.

“The Area of Current income tax CIT which the federal government has proposed that it should drop to 25% has also been rejected by the governors insisting that the status scope be maintained just as the area of derivation, where the federal government wants to reform at 60%, whatever is derived from VAT should be used within the area at which it is derived has also been maintained by the state governors, this shall benefits and develop the economic growth of the country.

Read Also: Bauchi Govt slams Foreign Minister for criticising Governor Mohammed

Commenting on the full implementation of the Local Governments Authonomy, the Honourable Commissioner for Finance stated that on assumption of office, the executive Governor of Benue State, Hyacinth Alia promised local government Authonomy even before it was implemented by the Federal Government as its full implementation depends on the federal Government hence its the one to send monies directly into the accounts of the local governments.

Oglegba who called for Full Implementation of Local Governments Authonomy however, lamented that the challenges delaying its full implementation are the State Universal Basic Education Board SUBEB, Primary healthcare sectors and pensions Boards as well as primary and secondary schools which are not part of the local government systems and the debts owned by them and the local governments must be cleared to avoid sanctions from quarters whom they are owning. However, the Supreme Court has passed its verdict and it shall be adhered to, he emphasized.

Reacting to the debt rate of Benue State, the finance commissioner detailed that Benue State’s debt rate is currently three hundred and fifty billion naira (#350,000,000,000) which local governments share is one hundred and eighty billion naira (#180,000,0000,000). More than half of the debts are inherited, and garnish orders placed on the local government accounts are a huge threat, he added.

X-raying the Benue State 2025 budget of five hundred and fifty billion, Oglegba said that the budget has been factored on capital expenditure which carries 90% because Benue State in the previous years has been the least state in the country on capital expenditure which has to do with human capital that involves training of people on skills to enable them to do things by themselves to live. This involves healthcare services, education, ICT and empowerment amongst others to enhance the livelihood Of citizens, he stated.

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp