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Anambra has fared well in tax payment – Nzekwu



ANAMBRA State’s administration is evolving in the right direction. Though taxing the informal sector has remained a challenge to many because of the number of people who fall under it. The government has continued to show strong interest in taxing the informal sector given the large number of people that fall under this category.

Chairman of Anambra State Internal Revenue Service, David Nzekwu stated this during the breakfast meeting with Dame Gladys Simplice, President/Chairman of Council, Chartered Institute of Taxation of Nigeria (CITN) to mark the 2020 Anambra State Tax Awareness Week in Awka.

In his presentation titled, “Taxation of informal sector, challenges and prospects” Dr. Nzekwu said tax administrators faced major operational difficulties in trying to tax the informal sector due to its transient nature of operations, lack of proper booking, and the large number of unregistered business. He argued that when assured of tangible benefits with effective institutional mechanism for enrollment and administration those in the informal sector will buy into the obligation of paying their taxes.

“Although the informal sector may appear difficult to deal with, there are huge potentials for revenue growth in this area. Whilst Anambra has an estimated 1.2 million people trading in the state, only 7, 150 individuals pay tax via Direct Tax.” Dr. Nzekwu further said that Anambra had fared well in tax payment, “as the close of 2019, we realised N26.3 billion  in  terms of revenue collection in the state but the large chunk of the money came from PAYE payment, that is from this informal payment but in this week of tax awareness, we hope to approach and engage the informal sector in various town hall meetings and through education and enlightenment programme meeting that will be continuous. “

In her remarks, President/Chairman of Council, Chartered Institute of Taxation of Nigeria, Gladys Simplice, argued that paying of tax would make us grow as a nation. Dame Simplice, said every taxpayer should be happy to contribute his or her quota to the development of society as paying your taxes will make us grow, she said. But I want some further amendments to help tax administration in Nigeria.

“We tell the government to do more. Most of the amendments on the finance acts were our suggestions. Ours is to take suggestions on tax to the government it is left for them to accept it or not. We must give credit to the present administration for all things that were raised have been addressed.”

In his remarks, the Vice Chancellor of Tansi University, Prof. Eugene Nwandialor, emphasized on the importance of tax education. He maintained that tax is a serious issue and people, especially, payable adults should be told what tax is all about.  “The people you are asking to pay tax, do they know what tax is all about. We have multi taxation in some places. People don’t even know what is involved and the penalty that is where we should start. What is tax? What are tax categories and who should pay what, when should and how should you pay.”

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