SDN in collaboration with the Rivers State Tax Justice and Governance Platform and its esteemed partners including the Chartered Institute of Taxation (CITN & PH Society), Society of Women in Taxation (SWIT), Rivers Entrepreneurs and Investors Forum (REIF), and other concerned and credible civil society actors convene today, a press briefing to address the current state of tax administration in Rivers State.
It is evident that the current state of tax administration in Rivers State is in dire straits and requires urgent actions by the Rivers State government. The consequences of inaction, including revenue leakages, capital flight, and business closures, are contributing significantly to unemployment, insecurity, and stifled entrepreneurial innovation, particularly among Nano, Micro, Small, and Medium-scale enterprises.
Against this backdrop, we urgently call upon the Rivers State Government to address this critical issue and demand for both policy and administrative reforms that will usher in a fairer and more progressive tax regime, including rates at the local government level that will facilitate the ease of doing business in the State. Our suggestions are outlined below.
Notably, the Rivers State government could borrow a leaf from recent tax reforms and practices in Lagos, Kaduna and Akwa Ibom States, which are proving to be workable models that seem to have streamlined, simplified, ensured ease of identification of taxpayers, payment of taxes and rates, acknowledgement of payment, swift information service, and above all significantly increased internally generated revenues (IGR).
To this end, we are committed to supporting the tax reform process in Rivers State and therefore make the following recommendations:
1. Harmonize Tax Collection System-
- This will involve enacting a law to set up a joint State & Local Government tax collection system for efficiency, transparency and accountability.
- The Rivers State Internal Revenue Service (RIRS) should clearly define taxes and rates, the amount payable and by who.
- Additionally, the State Government should facilitate the completion and implementation of a tax and rates harmonisation policy document.
2. Improve on the Digitization of Tax Payment Process:
- All taxes and rates payments should be made online via publicised platforms, utilising payment modules such as APPs – where applicable.
- The Rivers State Tax Management Information System (RIVTAMIS) Platform should be upgraded by the RIRS, so as to make it more robust, user-friendly, and efficient.
- Establish an effective and a more user-friendly tax appeal and mediation mechanism using existing technology such as artificial intelligence (AI).
3. Eliminate & Criminalise Multiple & Nuisance Taxation
- All taxes and rates should be categorised and made payable on a cluster basis to make it convenient for taxpayers i.e State and Local Government taxes should be clustered and paid once.
- Also, there has to be a pathway for the informal businesses to obtain tax identification number (TIN) as a means of expanding the tax net rather than increasing taxes and rates.
4. Scale Up Ease of Doing Business: The Rivers State Government should facilitate the adoption and adaptation of the national framework on ease of doing business to reflect local realities. Finally, the State government should review, categorise, and enumerate all informal sector businesses; identify and devise effective means of periodically engaging with the leadership of all professional and trade bodies with a view to designing a mutually agreed methodology of collating their members’ data, views, buy-ins and feedback.
In addition, widen the tax collection dragnet to include professional bodies and trade associations, and properly engage and empower their various leaderships to withhold an approved rate of the members’ earnings and emit directly to government treasury.
In conclusion, we express gratitude for your participation in this briefing and implore His Excellency, Sir Siminalayi Fubara, the Executive Governor of Rivers State, to prioritise these urgent reforms.
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Sign:
Amaechi Kelechi Justin
Lead, Rivers State Tax Justice & Governance Platform
Sign:
Mrs Florence Ibok-Abasi
Country Director, Stakeholder Democracy Network
Sign:
Mrs Victoria Okokon
Chairman, Chartered Institute of Taxation of Nigeria, Port Harcourt & District Society
Sign:
Dr (Mrs) Dame Eunice Odum
Rivers State Coordinator, Society of Women in Taxation
Sign:
T.M.T. Braide
Secretary General, Rivers State Entrepreneurs & Investors Forum (REIF)
