The N4.5billion 2013 Internally Generated Revenue of Kogi State for which N215million is generated from MDAs has been described as appauling and unacceptable in view of the current economic realities.
Making the disclosure at a workshop organized by GEMS3 in collaboration with Kogi State Board of Internal Revenue Service, Yomi Awoniyi, Kogi State Deputy Governor, called for contributions and suggestions towards the realization of harmonization of taxes that will help reduce burden on businesses and the effective collection process of taxes.
Awoniyi lamented the revenue earning of the state, however taxed the participants on the need to reduce leakages and urged them to also introduce tax complaints mechanism in MDA’s.
The Deputy Governor described the importance of IGR to a state as Kogi State that solely relies on allocation from the federation account as one that cannot be over emphasized, called for a review of obsolete rates and levies that are being charged in MDA’s, disclosing that the old rates are no longer in tandem with current economic realities.
Awoniyi disclosed that for a state that relies solely on federation account, the workshop presents a very important opportunity for all possible measures to be put in place to ensure availability of funds to the state government for its developmental projects.
The Deputy Governor thanked GEMS3 for its role in tax, rates and levies harmonization in the local government areas of the state, a feat he said led to the passage of a law in that regard.
Earlier in his speech, the state chairman of BIR, Mallam Ahmed Musa, said the MDA’s in the state account for low revenue generation, a development he added would not be allowed to continue, especially with the dwindling federal revenue allocation to the state.
The BIR Chairman, said the 2013 figures shows poor performance by MDA’s with figures for 2014 yet to be computed, the workshop he disclosed would provide collective resolution of the problems bedeviling the revenue generating operations of the Kogi State MDA’s, said factors have been identified for the low revenue generation by MDA’s .
While noting that the bulk responsibility of generating IGR is that of the BIR, Mallam Ahmed however described the MDAs as vital to the realization of that objectives, solicited the total support and cooperation of MDAs as to make funds available for government to meet the developmental yearning of the people.
