Gov Mbah urged to review high state tax policies 

Mon, Sep 16, 2024
By editor
4 MIN READ

Africa

AGAINST the backdrop of allegations of multiple taxation on businesses in Enugu State, the candidate of the Labour Party in the 2023 Governorship elections in the state, Chijioke Edeoga, has pleaded with the state governor, Peter Ndubuisi Mbah. to exercise discretion in the imposition of taxes on the people.

Edeoga, who accused the state government of multiple taxations, appealed to Gov. Mbah to “have mercy on the people of the state” by reducing the tax burden that purportedly came into operation since the advent of the present administration in the state.

In an open letter to the governor, titled, “Heavy and Multiple Taxes: Have Mercy on the People of Enugu State: An Open Letter to the Governor of Enugu State, Edeoga highlighted multiple taxation and increases in taxes in the state, arguing that such excessive tax regime has led to frustration-induced high blood pressure and the flight of businesses from the state.

“You have increased tenement tax for bungalows in Enugu metropolis from N30,000 to N150,000 per annum. Tenement tax for high-rise buildings in high-density areas of Enugu metropolis from N50,000 to N300,000. Tenement tax for high-rise buildings in low-density areas of Enugu metropolis increased from N80,000 to N400,000. Land instrument/title registration increased from N70,000 to N300,000. Private school tax increased from N30,000 to N200,000 per annum. Trading shops of all kinds are forced to pay a new flat rate of N21,000 wherever they are located in the state irrespective of the number of persons occupying them. This excludes charges for refuse disposal and management and other arbitrary charges.”

According to him, the daily tax for all buses operating in the state was increased from N200 to N2,000, while the tax for Tricycles/Keke was increased from N100 to N450 and barrow pushers increased from N100 to N2,000.

Small business premises tax soared to N25,000. Medium business premises tax skyrocketed to N56,000, while malls are made to pay N200,000.

“In Enugu, we have a purchase tax that ranges from N5,000 to N15,000 depending on location. This has been imposed on groceries and all factory products, from which VAT had already been collected, meaning there is double taxation, assuming that all other taxes listed are morally justifiable. We recently got what you called Carbon emission/generator tax for hotels ranging from N88,000 for small hotels to N200,000 for big hotels.

“This is happening when the government has failed to provide stable electricity and even in the infrequent times that public power is available, the people still battle with crippling estimated billings because the power company has not democratized the installation of prepaid electricity metering systems,” he said.

Making reference to the tax principles laid down by renowned economist, Adam Smith, Edeoga contended that good taxation must adhere to the principles of fairness, certainty, convenience, and efficiency.

While alleging that Governor Mbah might be employing huge taxes as revenge against the people for allegedly not voting for him during the last elections, Edeoga also compared the tax regime of Mbah’s administration to what triggered the Aba Women’s Riot of 1929.

“Enugu people had hoped for a breadth of fresh air in the run-up to the 2023 elections, but they were robbed by elements which lifted you into office against what the people spoke through the ballot. And rather than have mercy on the people, you faced them with the horsewhips of vengeance,” Edeoga said.

 “As it is today, the people of Enugu State are being taxed without their inputs and with no regard to their capacity. Their cries bring to mind the agony of TAXATION WITHOUT REPRESENTATION.

“In 1929, Igbo women rose against the colonial government in the historic Aba Women’s Riot, to protest against taxation without representation; a hundred years later and under an administration led by our own citizens, we are confronted with the same challenge. Those who fail to learn from the lessons of history are doomed to repeat it,” he said.

He appealed to Governor Mbah to reconsider his approach to taxation by factoring in the economic realities of the people, the ability to pay and the future economic growth of businesses in the state.

A.I

Sept. 16, 2024

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