Cross River focusing on expansion of tax base, instead of tax increase- IRS chairman

Governor Ben Ayade

Executive Chairman of Cross River State Internal Revenue Service (CRIRS) Mr. Akpanke Ogar has announced that expending the tax base by getting more payers into the tax net, rather than increasing taxes is the focus of the Management of the Cross River Internal Revenue Service under his watch.

According to the Chairman, this is in line with the Tax Exemption Policy of Governor Ben Ayade, of Cross River Sate.

The State Internal Revenue boss made the disclosure in Calabar at the opening of a two-day workshop on 2021 Annual Tax Week in Calabar, with the theme, “Understanding Emerging Issues in the Nigeria Tax Environment: Enhancing Voluntary Compliance”.

He disclosed that out of population of over 3million in the state, the Revenue office projects that there may be about 1.5million persons that are economically active and should be under the tax net but what is currently under the Tax net in the state is about 500,000 tax payers, stating that “our aim is to increase the number in the tax net, not increment of taxes.”

The Chairman noted that the Tax Authority is correspondingly pursuing with vigor the implementation of the Governor’s Tax Exemption policy in collaboration with the State Anti-Tax Agency. This collaboration according to him has assisted in identification, categorization and classification of beneficiaries of the policy and their exemption from paying taxes in the State.

 The Chairman used the opportunity to remind members of the public of the Tax relief approved by the Governor and implemented by the IRS, for individual taxpayers and businesses to mitigate the impact of the COVID-19 pandemic last year.

He explained that with increasing vaccine coverage in the State, one of the leading in the country, and the expiration of the tax relief window in December 2020 that the Service has tuned into the mood of the economy stating that.  “Now the economy has started picking up we are aiming to sensitize and enlighten Tax payers on their rights and for them to know the Taxes and levies accruable to the State and to the Local Governments.” This awareness according to him will assist voluntary compliance and help grow the taxpayer size in the State.

“For instance, if you are in Transportation Business, you get to know the taxes you are due to pay to the state government and the ones for the local government.  So it’s a workshop to know what they are supposed to pay and to know their rights and obligations.”

 The CIRS Chairman enjoined people to get back paying taxes as COVID has eased up and that there is no plan to increase taxes in the state even though the state government lost revenue in billions due to the COVID 19 pandemic.

 He added, “Rather we are trying to expend the tax base by getting more payers into the tax net. Our focused is on sensitizing people on the need to pay taxes. That is part of the partnership we have with the Chartered Institute of Taxation of Nigeria.”

 Also speaking, the National President of the Chartered Institute of Taxation of Nigeria (CITN), Mr. Adesina Adedayo represented by Samuel Agbeluyi , the Vice President of the institute, as well as the Calabar & District Society Chairman of the CITN, Comrade Akpa Ogon noted that the CITN has been interacting and consulting with the tax administrators and consultants towards improving the low level of voluntary compliance in tax payment in order to grow the tax revenue.

 They expressed pleasure to be in partnership with the Cross River State Government and reiterated that there is need for people to voluntarily comply with tax law policies and requirements.

 Comrade Ogon in particular said, before the tax payer begins to talk of or ask how was the tax paid is used? He or she must first pay the tax by voluntary complying.

 He said, “voluntary compliance means filling your tax return and paying on time. Don’t allow the revenue agency to use funds from those who have paid their tax to start going after you that has not paid. If you comply on time, government will have money to execute projects”.

 He maintained that on the part of government there was need to show prudent Management and transparency in tax revenue and earnings because that will help to improve voluntary compliance in tax payment by tax payers. But first, the tax payers must pay.”