The Kogi government has suspended collection of taxes on trucks carrying produce pending the resolution of the crisis that led truck drivers to block the Abuja-Lokoja-Okene highway on Dec. 19.
Alhaji Yakubu Oseni, the chairman, Kogi state Board of Internal Revenue Service, made the disclosure to newsmen on Tuesday in Lokoja.
He said that the action was also in compliance with a letter from the Federal Ministry of Agriculture which directed suspension of collection of taxes on produce.
He said that the drivers decided to block the highway in their bid to give effect to the letter from the ministry.
He said that the board was not aware of the existence of the letter until the action.
Oseni however clarified that collection of taxes on produce would resume as soon as the crisis is resolved.
He said that the board, the consultants handling the collection of taxes on produce, the leadership of the truck drivers and other stakeholders would meet on Dec. 21 to find lasting solution to the crisis.
He expressed hope that the meeting would arrive at modalities for collection of taxes on produce being moved through the state.
The Chairman said that the current official rate charged for vehicles conveying produce was between N1, 000 and N1, 500 per truck.
He criticised the consultants for charging above the official rate without the knowledge and approval of the board.
He admitted that the consultants approached the board for a review of the rates from January 2017 but added that government was yet to agree to the proposal.
“What the consultants are currently remitting to the coffers of the government is N18 million per month as against the N2 million per month being remitted under the previous administration.
“We have also been able to recover arrears of seven months remittances which were outstanding under the immediate past administration,” he said.
In the early hours of Dec. 19, scores of truck drivers blocked the Abuja- Lokoja-Okene highway to protest collection of exorbitant tax ranging from N5, 000 to N10, 000 from them by the consultants.
The action led to traffic jam on the busy highway with passengers and commuters trapped for more than five hours.
(NAN)
