Home News Edo state govt grows internally generated revenue, to introduce consumption tax.

Edo state govt grows internally generated revenue, to introduce consumption tax.

by Business News Report

By Omoh Gabriel

Edo state government has grown its internally generated revenue by over 200 per cent in the last three years. The state in a bid to meet its commitment to the people through the delivery of the dividend of democracy is planning to further grow its IGR to finance the ongoing projects in the state. The state internal revenue which stood at N750 million in 2008 has risen to N1.3 billion a month as at August 2011.

Briefing news men in Benin on the soon to be introduced consumption tax, the chairman of the state Internal Revenue Board Mr Oseni Elama said that there are 150 projects that are being executed across the state. The projects are located in the 18 local government area of the state. The various projects have generated lots of employment for the indigenes of the area where they are located. Some of the projects include road construction, renovation of schools, constructions of hospitals etc.

The state government Mr. Elema disclosed started the ax drive by ensuring that all civil servants in the state are paying the right taxes. He said the Governor Adams Oshomole in his quest to bring development to the door steps of the Edo people cut down on the cost of governance in the state starting from his office. He said by so doing the state government was able in the first year of the governor’s assumption of office to save N7 billion which was like the seed money with which he started infrastructural development in the state the second year. The state he said has succeeded in blocking some of the revenue leakages and has ensure that such monies that were going to wrong hands and private pockets in the past goes into government coffers.

He stated that now that the Edo people are seeing what the money realized from the state, which lacked development in the past, is being used for it has become imperative to ask for their understanding and pay all due taxes to enable the state move forward in the provisions of infrastructure.

According to Elama in order for the state government to take development to all nooks and cranny of the state, the government plans to boost its internally generated revenue by introducing consumption tax. The tax which is an indirect one will focus at the start on hospitality industry in the state. The state assembly has already given its approval to the law which was signed by the Governor on the 30th of June 2011. The law imposes a tax of 5 per cent on goods and services rendered in hotels, restaurants, and events centers and other facilities in Edo state.
The law which will take effect from 1st of September is to be cited as the Hotels and Events Centers occupancy and restaurants consumption law of Edo state. The tax according to the law will be paid by an hotel guest or any person who makes use of a hotel, restaurant, events centers or a hotel facility as well as those who use halls, auditoria, fields and places designated for public use for a fee. The tax is not targeted at the owners of these properties but users and services rendered by them.

According to the state government’s calculation there are close to 892 such places in Benin at the moment from which it hopes to generate addition revenue to beef up its internal revenue to the tune of N2 billion per month.
The plan of the state government it was gathered it to ensure that by the end of the 4th year of the Oshomole administration at least every primary school in the state will be renovated. Already several primaries, secondary schools have been rehabilitated and massive road constructions are going on in the state capital Benin and other parts of the state.

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