Revisiting The Issue Of ‘Multiple Taxation’ In Edo

All over the civilized world, a major source of income for government committed to societal advancement and development is taxes, rents, rates and fines.  Prior to the discovery of crude oil in commercial quantity in Nigeria, Agriculture and taxes were the main sources of income to both the Federal and Regional governments. But the era of petrol dollar presented government in Nigeria as a father Christmas that has to use only oil revenues to meet all citizens needs.
Comparatively, Europe, America,  Canada, and even South African economies are sustained by taxes paid by citizens. Given the dwindling income from crude oil available for sharing by  federating state governments in Nigeria at the moment, progressive governments like Lagos, Edo, Osun, Oun and Ekiti states are already looking ahead by establishing sustainable tax systems that would guarantee all year round income source to finance development.
The Oshiomhole administration in Edo State introduced taxes and is enforcing laws relating to taxes  to enable it finance the massive development the administration has embarked upon since the past six years aimed at taking Edo out of the woods, provide enabling environment for businesses and private life to thrive and offer social services to the people.
The Edo State Internal Revenue Service, by an Act of Edo State House of Assembly is saddled with the responsibility of collecting taxes, revenues and rates  on behalf of the Edo State government.
During the last general election, one issue that the opposition Peoples Democratic Party (PDP) kept flagging was  the issue of  “multiple taxation.”  They abused and maligned the All Progressive Congress in Edo state as if it was a sin for government to collect tax or if they were now to be in control of government, they would abolish tax. But it is good that Edo people reasoned far ahead of the PDP, knowing that any government in power needs taxes for it to survive and provide the much needed development to its citizens, hence their massive support for the APC.
Now that elections are over, it is time to revisit  the issue of “multiple taxation” as some citizens have continually presented it. Does it exist? Is it real? Is it just a misunderstanding of the issue?
The truth remains that multiple taxes exist anywhere in the world, but whether people suffer double taxation is what should be addressed. There are multiple taxation because you consider Consumption Tax, Value Added Tax, and you find out that there are two main streams of taxation. Direct and indirect taxation. Direct tax affects persons directly which are collected from earned income. It is to support government in meeting up with social obligations to create an enabling environment for businesses to thrive.
Indirect taxes on the other hand are targeted towards certain aspects of the economy in order to ensure there is even distribution of income and fairness to all. Those are avoidable  taxes if citizens want to avoid them. They include:  motor vehicle licenses, levies from shops and others. If you don’t own a shop, you don’t pay such taxes. We are all faced with multiple taxation on a daily basis if anyone cares to know or find out.
The misconception the PDP and misguided members of the public were giving is that there were so much taxes. What is certain is that nobody can be made to pay income taxes twice.
I watched the Chairman of the Edo State Island Revenue Service,  Chief Oseni Elamah explain to some media men who were recently in his office that “the Joint Tax Board was established  to harmonse income taxes so that no body (individual or corporate) suffers double taxation on same income.”
It is a civic responsibility that every adult that work and earn income must pay income tax. You do not need to wait for tax collectors to approach you before you do so.   Elamah  equally explained that “What has happened over the years was that for any tax to become due, it must be certain, specific and commiserate with the income you earn. The challenge is that we do not have a national identifier for us to know those qualified to pay under the law. Just like in America where they have the social security number which serves as tax identification. We introduced the Tax Identification Number so that you have an identity to show you pay tax anywhere in Nigeria. A lot of people who earn income are not properly accounted for or reported and therefore we are not able to ascertain the income the person earned.”
What is incontrovertible in this part of the world today is that humans find it difficult to pay tax. People want to earn so much income which are not subjected to tax. Sadly, such persons also expect development in the same society where they do not pay taxes. This is clearly the dilemma of government.
So, multiple taxation exist, but not in the way and manner the PDP presented it. It is in a different context all together. However, all hands must be on deck  to work towards eradicating people subjected to paying taxes on the same income.
There are some trade  unions which go about collecting membership dues even on the roads against the warning of government. Such collections are now being misinterpreted to mean “multiple taxes” which in the real sense of it are not. Some local governments also collect revenues from traders who are already under the  state government’s taxes loop,  which again are misinterpreted as “multiple taxes.” Even collection of monthly rates from business operators by refuse collection contractors which they freely entered into agreements with are misunderstood as “multiple taxes” whereas they are not part of taxes. This should be clearly understood by the public so that they do not allow themselves to be deceived by any misguided elements in the state.
Most interestingly, if you go round Benin City and most parts of Edo South, Edo North and Central since Oshiomhole assumed office, you could see and feel development projects going on in almost all parts of the state. It’s like magic and such a man needs encouragement, cooperation and prayers from all citizens by prompt payment of our taxes.
It is on record that previous administrations, both military and civilian took Edo people so much for granted. The military and PDP  watched the state’s major  infrastructures:  roads, electricity, water supply   and social services go down to apologetic levels. Roads, apart from being heavily dilapidated served as death traps as pot holes fueled carnage on most of our intra and inter-city highways. Water for people of Edo North and Central was a mirage and rain harvesting remained the major source for residents. The stench in the streets of Benin City and most urban centres as a result of unattended  massive heaps of refuse left visitors wondering how resilient Edo people are that epidemics have not wiped them off the face of the earth.
Public primary and secondary schools were left to rot away as Edo children in most parts were learning either under  trees or  leaking  roofs, such that whenever it rained, primary and secondary school pupils cringed in waterlogged classrooms. Hospitals in Edo were in very sorry conditions. Maternal and child mortality rates in Edo were only comparable to nations at war-Bosnia, Herzegovina, Seria or famine ravaged Somalia.
But many thanks to the political leadership provided by Comrade Adams Oshiomhole who has put the taxes of citizens into meaningful development projectsThe urban renewal project which cuts across the three senatorial districts with much focus on Benin City, Auchi, Ekpoma, Uromi and Abudu  and impressive impact in  all the 18  Local Government Areas of the State show massive modern road networks with all the latest walkways , street lights, and flower lawns.  Massive drainage projects of the Oshiomhole-led administration has helped to control flood and erosion  menace that was almost going to submerge the whole city of Benin and Auchi. The most worrisome Queen Ede erosion menance is receiving the best of attention ever and work has reached advanced stage.   The popular Five Junction in Benin which used to be  flooded and notorious den of robbers is now a beautiful sight to behold. It is now a modern ring road, well asphalted  with massive underground drainage, walk ways  and  street lights.  Almost ten roads in the neighbourhood have been reconstructed  to add to the beauty of the area. The  Isonoro axis of New Benin which  hitherto was a refuse dump site both by residents and previous governments is now a modern layout with all the pecks of modern city now  re-named Gani Fawehinmi Layout to immortalise  Late Chief Gani Fawehinmi who, like Oshiomhole fought for, and defended the rights of the poor people.
Realising that education is one of the biggest industry of Edo people and that it provides the foundation for the development of any society, Comrade Adams Oshiomhole has made educational revolution in the state a cardinal objective of his administration. One of the greatest achievements of the APC-led administration in the educational sector is “the red roof revolution” as it is now being referred to in the state. The red roofs  are all aluminum roofing sheets that have replaced the rotten, leaking  zinc of previous governments, and many more development projects and programmes enunciated by the Oshiomhole-led government.
What is evident everywhere are strong institutions which  are being built so that generations to come in Edo would have a very solid foundation to contribute their quota to societal development. This is evident in the Public Procurement Law in Edo leading to the establishment of Bureau of Public Procurement, Criminal Justice reforms, Bureau of Internal Revenue Services, BIRS and many of such institutions. Edo people should, therefore,  continue to support the ongoing and all-round development of the state with their taxes.
Mr. Dan Owegie, is a chieftain of the All Progressives Congress, APC, Edo State.