Kogi is always in the lead for novel news. The last was the controversial ‘Bread Tax’ that was later withdrew or denied by the state government.
The recent trending news is ‘POS Tax’ for point of sale terminal operators all around the state, a development that is not heard of in other states of the federation.
These two vocation fell into the template of small and medium scale enterprises (SME) where individuals through self financing or government support can sustain their livelihood through legitimate engagement.
In a state that had taken the lead of high cost of living for many consecutive months, with its citizens looking for leeway to survival, it will be counter productive for government to engage in outrageous taxation that will discourage small and self sustaining ventures.
The National Bureau of Statistics (NBS) in its last assessment said Kogi and two other states are in the lead of both high cost of living and inflationary rates. A state where the presence of federal government agencies is the bane of its stable and unreliable economy.
It is obvious that these two items fell under the cocoon of small scale businesses among others, that is the bane of the thriving economy of developed and developing countries in the continent, but the reverse is the case in Kogi state.
POS transaction is an extension of banking activities to allow the ease of doing business to many medium/low income earners, hence, the new lax law in Kogi negates its operations by individuals. It also amounts to double taxation.
This is basically because banks in Kogi state are expected to be paying taxes to the state, so its extension by individual operators of POS that is given by the banks are not expected to pay another round of tax to the state government.
Bread, even though rescinded by the state government, also fall under the purview of consumption items that VAT is paid at the point of purchase and consumption, so if the law stood, it would also be tantamount to over taxation.
To encourage small scale and petty businesses that people in Kogi state relied on for their sustenance and survival. It is high time the state government initiate policies and programs to support low income earners, artisans and traders.
Since post COVID and its new waves, many states of the federation had embarked on programs that will cushion the effects of the scourge, either directly or through assess to funds provided by the federal government. Kogi should not be an exception.
The rate of poverty level revealed by NBS should not be allowed to deteriorate as it will amount of suicidal efforts initiated by the state government against its citizens.
Aside petty businesses, the available medium term and interest free loans at macro and micro level will mitigate the unimproved economic status of the state.
Government should partner with the political class at all levels; political appointees and politicians to create more avenues of empowerment, capacity building, skill development and acquisition, so as to reduce the current high rate of poverty and underdevelopment in Kogi state to the barest minimum.
It is high time the state government should look out for more revenue mobilisation from the proliferation of small scale industries in Kogi, establish more tax outlets and create an enabling environment for citizens to carry out legitimate business, rather than over burdening them.
This is the only way and avenue all and sundry will be given a sense of responsibility and belonging in the state, when all forms of legitimate business are allowed to debut without restrictions.
There is no state in Nigeria, not even Lagos, Kano and Rivers with the highest population, that has contemplated POS Tax, therefore, Kogi should not be at the forefront of such anti-people policy.
What the citizens need now is encouragement from government and support and not the other way round.
– Usman Okai Austin writes from Abuja.
