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Edo bans use of revenue collectors, begins presumptive tax regime

By BusinessNews Staff on June 28, 2015

In order to shore up its revenue base amidst dwindling revenue from oil, Edo State government has announced the commencement and implementation of Presumptive Tax regime which targets the informal sector.

With this, it said that henceforth the engagement of contractors for the purpose of collecting taxes and levies from artisans, traders and drivers had been banned.

Against this backdrop, the state government said it had disengaged the services of Akugbe Ventures and others who were responsible for collection of levies from commercial drivers in the state on behalf of the state government.

Chairman of the Edo Internal Revenue Services (EIRS), Chief Oseni Elamah, who disclosed this at a press briefing on Friday in Benin City, said unions like the Road Transport Employers Association, Drivers Welfare Scheme and National Union of Road Transport Workers were also barred from collecting union dues on the high way.

Chief Elamah noted further that extant laws forbade government from engaging agents for the purpose of collecting taxes and levies from citizens.

He said revenue accruing to the government at all levels were supposed to be collected in a prescribed manner and not through agents or consultants.

Elamah explained that all eligible tax payers were expected to comply with relevant tax laws by filing annual tax returns on the basis through which they can be assessed on what to pay.

The EIRS boss said no cash payment was allowed except through designated banks.

He therefore urged commercial drivers to report anybody that harassed or intimidated them into paying money to them.

According to him, “The law gave government the power to generate revenue to render services to the people. The provisions there is that nobody has the power to mount road block in whatever name on the highway to collect revenue.

“We have written to the police to enforce this cashless revenue collection of the Edo State Government. We are implementing the federal government law which forbids anybody from mounting roadblock under the guise of collecting revenue. Any member of the public that is being harassed or intimidated should immediately report such person to the police.

“We urge the police to arrest such persons because the laws do not allow the collection of revenue on our highways or streets. Whenever you pay, demand for government official receipt to be issued to you.”

On Presumptive Tax, he said those in the informal sector would be encouraged to document their income over a period of one year to enable tax authorities ascertain their income because taxes are paid on income earned.

[Punch]

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