Rivers State Governor, Sir Siminalayi Fubara, has said that his administration will not over-burden the people, residents and businesses with excess taxes and levies.
Governor Fubara made the assertion when he declared open the 156th Joint Tax Board Meeting with the theme: “Opportunities and Strategies For Improved Taxation of High Net-Worth Individuals In Nigeria”, in Port Harcourt, last Wednesday.
The Governor also said that the most tenable solution that will strengthen the capacity of State Governments to continue to deliver public services and development to their citizens will be to maximize tax revenue collection at all levels and across sectors.
If such is done, Governor Fubara asserted that the burden from a struggling national economy as experienced in Nigeria, which is buffeted by high inflation, will be minimized on State Governments.
The Governor bemoaned the increasing lack of adequate resources available to State Governments to deliver their development commitments to the citizens, adding: “Tax is a tool for the government to deploy to advance several positive objectives. First, it enables the government to collect public revenue to provide public services and ensure the continuous functioning of the public sector.
“Second, it can also be used to make society more equitable by redistributing resources to benefit the most vulnerable members. Consequently, the tax system is a matter of great interest to all Nigerians because, without adequate revenues, it will be difficult for the government to meet its obligations to provide public services and advance the collective security and prosperity of citizens”.
Governor Fubara explained the modest success achieved so far by his administration in effective collection and utilisation of revenue it has continued to collect from tax paying public.
He said: “In Rivers State, our approach is not to impose more taxes on our people but to broaden our tax base without increasing the rates, which has enabled us to generate more internal revenues as evident in the increasing collection figures on a month-by-month basis.
“Apart from keeping us above water, we are responsibly using the much-improved tax collections to fund critical infrastructure, including roads, schools, security, and healthcare across the State.”
Governor Fubara listed the Trans-Kalabari Road, Elele-Egbeda-Omuku dual carriageway, Zonal Hospitals at Degema, Bori, Ahoada, and Omoku towns as areas the revenue has been deployed.
The Governor said that the new Rumuigbo General Hospital, and the new Psychiatric Hospital also at Rumuigbo, are among the numerous projects that are fully funded with internally generated tax funds.
He pointed to the resolve of his administration to cooperate with the Joint Tax Board to streamline its tax system, broaden the tax base and strengthen the State’s Internal Revenue Service in order to achieve greater efficiency and effectiveness in collecting legitimate taxes and levies without over-burdening the people.
Governor Fubara stated that: “The purpose of a tax system is not to stifle society but rather to enable it to develop and prosper by putting those who create wealth in the best conditions where they can be encouraged to continue to produce and create more wealth.
“Furthermore, a responsible tax system must impose nothing more than a fair amount that serves the public interest and is attractive to businesses and investors.”
Governor Fubara stated that the Joint Tax Board has been at the forefront of effective tax administration in Nigeria and their input and efforts at promoting tax harmonization has been remarkable.
He said as an institution, the Board should continue to address itself to efforts at repealing obsolete policies, promotion of cooperation among tax authorities across the country, and provision of training, peer review, and best practices for State Revenue Agencies.
Governor Fubara, therefore, challenged them to use the occasion to focus on exploring opportunities and strategies that will improve the taxation of high net-worth individuals in Nigeria, and also urged them to come up with policy measures that will encourage the super-rich to pay fair taxes voluntarily while channelling their excess resources into productive economic building investments.
He said, “This is the way to build a stronger, broader tax revenue-based economy for our country; one that encourages the production of more wealth, shared economic growth, opportunities, and prosperity for everyone.”
In his welcome address, Executive Chairman, Rivers State Internal Revenue Service, Dr Chibeoso Aholu, said the State is delighted to host, for the first time, the Joint Tax Board Meeting, and thanked Governor Fubara for his support towards its success, while expressing the hope that the meeting will streamline policy suggestions and strategies to help governments at all levels to improve their revenues.