…Says Rivers must expand its tax base, not increase tax
The Joint Tax Board (JTB) of Nigeria has been urged to bail Nigeria out of its difficult times of inadequate funds by finding a way to tax the super rich.
Governor Sim Fubara of Rivers State who dropped the charge in Port Harcourt on Wednesday, December 11, 2024, said oil revenue has been suppressed by vandalism and theft, saying its up to taxes to bail Nigeria out.
For taxes to do this, the governor said the JTB must find a system that the superrich can be taxed appropriately without force. He said tax fairness is important.
Fubara said that the approach is to be implemented in Rivers State to boost the state’s internally generated revenue (IGR).
He also urged the Rivers State Internally Generated Revenue (RIRS) to broaden the tax base to increase the state’s IGR, not by increasing taxes further. The state’s head of the tax board, Chibeoso Aholu, later in an interview dispelled fears about the task, saying he was not a politician and would not bother delve into what politicians think. He said he would pursue the task without fear. Ohalu also said as long as he followed the law and as long as the governor remained behind the push, he was sure that the superrich would not see it as vindictiveness or targeting of political enemies.
Fubara, declared the JTB meeting open and said he did not waste time to approve the hosting of this 156th conference, the first in Rivers State ever. He said he was not only their member (as immediate past accountant general of Rivers State), but that he believes in the huge work they do.
The governor said: “The work the JTB handles touch very crucial foundations of the nation’s survival. The JTB is in the forefront of the nation’s tax revenue. They also are at the backroom of the policies and promotion of authentic training as well as peer review activities, and best taxes in each state.”
He commended the JTB for consistency in making Nigeria’s tax system effective.
The governor said Rivers State is ready to work with the JTB for the RIRS legitimate taxes without overtasking the people of the state.
“Tax is input for government to service the public sector. Tax makes for equity and is of interest to all Nigerians without which public won’t work. Now, with the present economic struggles, state governments are overwhelmed with how to meet the demands and needs of their people. The burden is on tax.”
The governor made it clear that more people paying taxes is better than increasing taxes for the few that pay, saying this has resulted in more revenue coming in. Gov Fubara inherited a monthly IGR of about N12Bn but has reported moving it to about N28Bn. This generated some controversy of whether it is increase in collections or that transparency has been introduced into the IGR system in the state in the wake of the raging political crisis.
On the crucial matter of tax compliance which comes from justification from what the government is doing with the taxes, the governor said; “We have been responsible in the use of tax revenue: see schools, hospitals, roads, and many other numerous projects all fully funded by IGR, no loans.”
He went on: “Tax, to us, is not to task our people but to provide better life to them. Responsible tax must be fair to payers and attractive to the business people.”
In his welcome address, the RIRS boss, Aholu, reminded Nigerians that the World Bank and International Monetary Fund (IMF) have warned Nigeria to look to taxes to generate funds and escape the scourge that is afflicting the nation’s economy at the moment.
He said that was what the JTB was out to look into in Port Harcourt.
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