Oshiomhole advocates strict enforcement of tax payment

Edo State Governor, Adams Oshiomhole, on Friday said Nigeria must return to its strict tax policy which was applicable before the oil boom of the ‘70s, as a way of addressing  the economic crisis caused by the fall in the price of crude oil.

The governor, who spoke when he received participants of Course 24 of the National Defence College, Abuja, in his office in Benin, explained that states and the Federal Government must devise means of boosting their internally generated revenues as practised in developed countries of the world.

He said, “Central to every debate to every country with mature democracy is the issue of tax payment. We have to find the courage to be firm and just and we have to give commensurate service.

“When villagers met at the village square to discuss (then) and you made a bold statement, another villager would challenge you, would tell you to shut up because you had not paid your tax. 

"He would tell you, 'Don’t talk where men are talking,' because you had not paid your tax, that you are not a man.

“Villagers used to recognise that not paying tax was not an option. And for you not to pay tax, you must show a certificate or evidence that you are ill or bed-ridden and, therefore, you could not work.

“Somehow, at the peak of our oil boom, this practice was abolished. And today, if you go to my village, they have a very beautiful school but only a few people are paying tax."

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The governor also lamented that his administration had been faced with the challenge of irregular and inaccurate payment of taxes by many civil servants in the state.

Oshiomhole added, "How far can we continue like that? For me, this is a national issue that government has to address, not just about Edo but (for) the whole nation, whether we truly can have a functioning state, where 90 per cent of the people are outside the tax bracket but are entitled to facilities.

“Central to the political debate in every country is the question of taxation. Who gets what? Are you going to collect more taxes from the rich or are you going to collect more taxes from the poor?

“In Edo State, one of the tasks we face in the course of revenue generation is that many of my comrades in the civil service are not paying correct taxes. In fact, I stumbled into a circular in which one of my predecessors agreed, under pressure, that notwithstanding the law on Pay As You Earn,  people should pay seven per cent of their basic salary.” 

"And I discovered that the three arms of governments were guilty of this - both the judiciary, the House of Assembly and of course the executive, including commissioners, permanent secretaries and the entire civil service.

“But a progressive government would ensure that taxes are paid; it would be structured in such a way that the rich will pay more than the poor. But everybody will pay something and it is the taxes collected from the rich that is used to provide a robust social safety net for those who are victims of so-called market forces and of competition.‎"