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Why we approved tax palliatives for SMEs – Delta govt

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The Delta State government on Monday explained why it approved tax palliatives for some categories of Small and Medium Enterprises (SMEs).

Monday Onyeme, the chief tax officer of the state and chairman, Delta State Internal Revenue Service, said the recent approval of tax palliatives by the state government was government’s way of assisting private businesses in the state to stay in business and retain their workers in a Covid-19 era of global economic downturn.

Speaking in Asaba, Onyeme explained that the tax relief included waivers on the statutory 25 percent interest on delayed tax remittance as well as the compulsory 10 percent penalty for tax default.

According to the revenue service boss, private schools and hospitals, eateries, publishing houses as well as entrepreneurs in the informal sector would also benefit from the tax relief provided they showed justifiable cause through a formal application.

Onyeme further explained that the tax incentives would cover fiscal 2011 to 2019, and advised those within the announced business categories to take advantage of the offer by approaching the Revenue Service for consideration.

He thanked the state governor, Ifeanyi Okowa, for approving the tax relief, stating that it was further demonstration of the governor’s goodwill and resolve to ensure the stability of the state economy through positive interventions when necessary.

It would be recalled that the Delta State government had last week reeled out tax relief incentives to some categories of SMEs in its determination to cushion the effects of COVID-19 pandemic in the state.

Those expected to benefit from the gesture include private school owners, hoteliers, private hospital owners, potable water providers, transport companies and owners of eateries.