To overcome challenges associated with multiple taxation, the Delta State government has commenced the process of harmonizing its tax laws, Sir Monday Onyeme, FCA, has said.
Onyeme, who is the Deputy Governor of the state, made the disclosure on Wednesday in Asaba when members of the National Association of Micro Finance Banks, NAMB, Delta State Chapter, paid him a courtesy visit.
According to him, multiple taxation was inimical to the development of the private sector.
“One request that you have made is for the state government to address the issue of multiple taxation and I want to inform you that such is already in process.
“Multiple taxation as it is termed, is one area that people complain about in almost all the states of the federation because we run a federal system of government, where you have what we call three layers of government; we have the local government, the state government and the federal government.
“According to the law, the Federal Government has its taxes, state governments have theirs and local governments also have their taxes; and each of these layers are supposed to tax organizations that are operating within their jurisdictions.
“If you meet the professionals, they will be able to tell you that this is the local government tax, this a state tax and this is a federal tax; but in practice it is not very easy to differentiate such.
“I am able to say this because I was once operating in that sector. So, you find local government officials coming to ask you to pay certain taxes, and the state government will still come back for the same tax. This is where some of the issues arise.
“I do know that the state is in the process of harmonizing its taxes and if passed into law, you will not be seeing multiple government agencies coming to demand for tax; you will only get one demand notice per annum; and with that demand notice you will pay whatever that is prescribed there.
โWith this, the state government will know what portion of the tax that will go to local government and what portion goes to the Federal government; and I think that will solve a lot of problems associated with multiple taxation,” the Deputy Governor said.
Earlier in her address, the Chairperson of the National Association of Micro Finance Banks, NAMB, Delta State chapter, Mrs. Evelyn Ugute, said that the visit was to congratulate the Governor of Delta State, Rt Hon. Sheriff Oborevwori and his Deputy, Sir Monday Onyeme, FCA, both for their victory at the polls and the Supreme Court.
Mrs. Ugute said that Microfinance Banks which are well over 16 in the state had contributed immensely to the Gross Domestic Product of the state through youth empowerment from their transportation scheme, effectively reducing unemployment.
She said that Microfinance Banks also provide employment to graduates, empowering entrepreneurs and support for the development of the agricultural sector across the state.
The group, while commending the state government for its developmental initiatives, requested for tax relief to foster growth, sustainability and ease of doing business in the state.
Pix: Deputy Governor Sir Monday Onyeme, FCA, in a handshake with the chairman, National Association of Micro Finance Banks, Delta State Chapter, Mrs Evelyn Ugute.
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