Strengthening Tax Collection Efforts

“It is important you pay your taxes. This is your civil responsibility, which must be guarded judiciously.” These were the words of the state chief executive Rt. Hon. Chibuike Amaechi on Thursday which tasking taxable adults in the state to fulfil their tax obligations.

 The Governor in his capacity as chief servant of the state was reminding the citizens and corporate organisations in the state an age-long responsibility recognised by law and enforced by successive governments. In 1789, a United States statesman, Benjamin Franklin observed: “In this world, nothing is certain but death and taxes.” An ‘Awake’ magazine once reported that on the Internal Revenue Service building in Washington, D.C. bears an inscription: “Taxes are what we pay for a civilised society.”

Taxes are compulsory levies which serve as key financiers of public utilities. Today, tax system is a global phenomenon albeit amount, time and scope may vary from country to country. Tax payment is scriptural as the Great Teacher, Jesus Christ himself paid tax and advocated same for his faithfuls as a mark of obedience to civil authority.

Tax is indispensable in the running of any government, military or civilian, democracy or autocracy.  Admittedly, government is the biggest employer of labour in developing economies. Unarguably, it is the highest spender, therefore, needs money to provide essential services for her citizens.

 In addition to promoting various social services, government introduces taxes in some exceptional cases to discourage or encourage certain behaviours, thereby serving as a tool of social engineering.

However, in developing economy characterised by poverty where many are struggling to survive, tax payment becomes an additional burden. This notwithstanding the type of tax- income tax, sales tax, property tax, corporate tax, value added tax, direct or indirect taxes.

Unfortunately, in our society today, it is a sad reality that the level of tax compliance is very low.

Tax evasion is unpatriotic, an economic sabotage. Lamentably, this economic epidemic continues to spread from one person to another, community to community, state to state, sector to sector unabated. Whether we agree with history or not, it is undeniably true that taxes are usually met with resentment and revolt.

In 1929 in Aba, present day Abia State, the colonial administration detailed a warrant chief, Okugu to take a head count of taxable men at the market square. This angered women who reasoned that very soon women too may be taxed. Chief Okugo was physically attacked and this revolt snowballed into the historic “Aba Women Riot” of 1929. Nigeria is not an exception, tax revolts even played important role in the U.S. war of independence against England in centuries past.

While Sunday reasons may be adduced for resentment, seethe, revolt or ultimate evasion of taxes by the citizens, one factor is the undeniable and that is the hydra headed monster of corruption. Public officers loot public treasuries with impunity, Civil Servants, military and paramilitary officers paid with the tax payers money turn around to be sine curists as commensurate service are not rendered to the citizen. Looters are neither held accountable nor serve some sanctions. Furthermore, public officers paid with taxpayers’ money exhibit high level of nepotism to the same tax payers. They flaunt ill-gotten wealth bought with money stolen from tax payers money.

Besides, they bag chieftaincy titles and national honours instead. All these combine to create a culture of tax resentment and evasion.

A critical analysis of the obnoxious situation, reveals that even the looters are the highest evaders. Investigations would reveal that their tax clearance, property tax, even income tax are fraudulent.

The organised private sector is not also disciplined in tax matters. Employees are exploited point blank as money collected in the name of taxes are ploughed back to their businesses only to disappoint their employees when tax clearance certificates are sought. In developed countries, issues of taxes evasion are taken seriously.

 It is lamentable that back home top flight celebrities in sports, music, movies even political demagogues never make headlines when found guilty of tax evasion.

Another salient point not taken cognizance of is the education of the members of the public on tax laws and systems. This is very imperative where a system allows multiple taxes i.e taxes to federal, state and local governments. A similar situation obtains in the United States of America, Belguim, Japan, Canada, Spain, Switzerland and others, yet evasion does not constitute the albatross it does here.

As the Governor rightly stated, tax payment is a veritable means of contributing to the process of economic development.

This is a clarion call to both taxable citizens and public officers to wake up to their responsibilities while citizens are admonished to pay their taxes, public officers are also reminded of the need to be transparent, accountable, responsive and prudent in spending public funds. Local government chairman, commissioners, board chairmen and members, directors of agencies and parastatals owe it as a duty to be fair to all citizens of the state besides prudent management of tax payers money. This is equally a veritable means of contributing to the process of social, economic and political development.

Late Arun Ghandi once said: “Rights without responsibility is a blunder.” This is added to the Grandfathers (Mahatma Ghandi) seven blunders of the world. Our right to demand from government is complemented by our responsibility to pay our taxes for efficient, effective, prudent and judicious uses on one hand. While the right of public officers to swing administrative pendulum on behalf of the citizens, take decision and formulate policies is complemented by their responsibility to be honest, responsive, accountable and corruption free. This is the surest way to tackle tax evasion.

Agu is  a Post Graduate  student in UNN.

Friday  Agu