The Governor of Osun, Ogbeni Rauf Aregbesola, on Monday challenged the leadership of the Ministries, Agencies and Departments (MDAs) and other government parastatals in the state to work hard and raise the revenue of the state.
He said for the state to survive economically, politically and continue on the tempo of ongoing infrastructure development, all hands must be on deck to upsurge the state’s Internally Generated Revenue from its average N500 million to N10 billion on monthly basis through prompt taxation.
Governor Aregbesola made the statement at Royal Park Hotel, Iloko-Ijesa, while declaring open, a 5-day Envisioning/Capacity Building Workshop on the Ten Years State Development Plan (2018-2028) organized by the Osun State Ministry of Economic Planning, Budget and Development.
Aregbesola lamented on the accruable revenue to the state from all sources every month, noting that the state must henceforth do the needful to expand its revenue potentials for the socioeconomic advancement of the state.
He described IGR as the only sustainable economic wheel of progress capable of catalyzing and stimulating prosperous economy in the society, thus informing the need for total rededication to robust socioeconomic drive through taxation.
Governor called on the people in the state to begin to look inward and imbibe the culture of performing one’s civic responsibilities by being faithful to basic tax responsibility.
He said a trait of productivity, hard work and efficiency must be popularized in such a way that the people’s potentials towards the generation of improved and robust revenue for the state would be realized.
Aregbesola posited that the people in the state must begin to see work as the only means of survive through which they can be able to galvanize their potentials to enrich themselves and also take out of surplus to government to run the state.
Governor Aregbesola held that for the 10-year proposed Economic Development Plan to be actualized, thus, Osun must earn before the expiration of his administration at least N4.1billion every month.
He said if Osun and her people really want to build a prosperous state as aspired, there is need for people to change their attitude towards taxation while people must see tax as an obligation that must be fulfilled.
Aregbesola told the gathering to use the opportunity of the workshop to develop and provide to the state a development agenda that will make Osun a virile, viable and successful state in Nigeria.
According to him, “In your course of planning in respect of this workshop, Osun must at least target 10 billion IGR in the next 10 years.
“Osun must earn before the expiration of this administration at least N4.1 billion as monthly IGR. It is not as difficult as we feel but we must apply our senses to it.
“If we really want to build a prosperous state as we aspire, we must pay our taxes. God doesn’t support idleness, laziness and indolence, so we must work to meet our personal needs and give to government what is due to it.
“So, we must also use the opportunity of this gathering to develop and provide for our state, a development agenda that will make it a virile, viable and successful state in Nigeria.
“There is no human society without the capacity to build itself, we only need few leaders who will mobilize them to see and do the needful.
“If Lagos earned N503.7 billion in 2017 as Internally Generated Revenue, as being claimed by its government which reflects that Lagos generated N41.7 billion for every month of the 12 months of 2017, therefore, we must struggle to get IGR capacity of N4.1 billion which is 10 per cent of what Lagos generates every month before we exit.
So we must henceforth let the people of Osun know that if Lagos could earn N41.7 billion as IGR every month, then it will be unthinkable and irresponsible for Osun not to strive to make N4.1 billion every month.
“That is what we need. It is the least we can work on. So by 2028 if Osun must be modern, we must have capacity to generate N10 billion monthly.
”So, the communiqué of this workshop must develop the capacity to support the state in its quest for development in practical term that will make Osun one of the best and most economically viable state in Nigeria”, Aregbesola told the gathering.
Proffering ways to economic prosperity, Aregbesola said “in whatever economic planning and programme we are envisioning, this must help to advance a prosperous future economy for this state, and we must bear it strongly at the back of our minds that in 10 years to come, there would be no allocation from Abuja because oil itself would have gone or about to go”.
He added, “The reason for this summit is on how Osun will be in 2028. We must through this summit acquire capacity to be able to fashion out how to survive without oil because one thing we cannot deny is the economy fact that in 10 years to come, there will be no economic value for crude oil.
“We must also be conscious of the future population explosion in whatever economy we are planning by educating the people against the effects of reckless procreation because if we failed to take the bull by the horn, the present population in the country would have risen to 200 million with similar effect on each state of the federation in 10 years time.
“Thus, we must aggressively pursue local production on our own to quash unemployment and the consequences of it; otherwise, we will still be facing challenges.
“In Osun, we have made little infrastructure development and if that doesn’t continue, then it will be difficult to traverse the state. These are the practical issues that we need to bother about regarding worthy successor” he stressed.
Earlier in his welcome address, Osun’s Commissioner for Economic Planning, Budget and Development, Dr. Olalekan Yinusa, said the aim of the workshop is to create appropriate awareness in all about what to do at political and bureaucratic levels of various sectors and build champions within the state of Osun bureaucracy such that the capacity to craft State Development Plans, Sector Strategies and multiyear budget framework could be domiciled within the state.
Dr Yinusa said, “Consequently, Mr Governor mandated the Ministry of Economic Planning, Budget and Development to craft a comprehensive 10-year State Development Plan spanning 2018-2028, Medium Term Sector Strategy (MTSS), Medium Term Expenditure Framework and Implementation Plans for the state.
”The preparation process of Osun 10-year State Development Plan will be participatory and inclusive of all relevant stakeholders such as non-governmental organizations (NGOs); Community Based Organizations (CBOs), organized Private sectors (OPS) opposition political parties in the state of Osun etc.
“The State Development Plan is expected to be a public document outlining the state overarching policy position, outcomes and impact of the activities of the present administration and those of other previous administration. It is not about a particular person but about the future of our state and those unborn or still to be born children of Osun; consequently all hands must be on deck to ensure its success.
In his remarks, the Chief of Staff to the Governor, Alhaji Gboyega Oyetola, said the workshop will provide a platform for equipping the people of Osun with the necessary skills required for the actualization of sustainable 10 years development plan.
Oyetola held that the Strategic Master Plan through the summit is capable of bequeathing a solid foundation for all round development in the various sectors of the state.
“I congratulate the good people of the state of Osun for this important step towards creating and institutionalizing sustainable development in Osun as Strategic Master Plan is capable of bequeathing a solid foundation for all round development in the various sectors of our state.
“On the approval of Mr Governor, the Economic Team and the Ministry of Economic Planning, Budget and Development met with the Department for International Development (DFID) to kick-start the process of generating a Development Plan and the collaboration had helped to make meaningful achievements”, Oyetola noted.
ISAAC OLUSESI writes, LUC, Land Use Charge is a single most salient source of internally raised revenue that will evolve considerable equity in income distribution and solve the problem of expanding urban service system in the State of Osun.
“From the Land Use Charge Collection Fund, consisting of all land use charge payments deposited in designated banks, the share to be paid to each local government council shall be such percentage of the net land use charge on deposit, being 80 per cent of the gross collection at the end of each month as agreed between the state and local government areas. The state portion shall be remitted to the General Revenue Accounts of the state,” a law, establishing the State of Osun Land Use Charge (LUC) states.
LUC is one of Governor Rauf Aregbesola’s numerous inventions in Osun, with considerably enchanting emphasis on greater mobilisation of internal financing sources to eliminate adverse effects of his development finance policy by constantly making efforts to increase the states IGR, internally generated revenue. His LUC aims at cutting down recurrent expenditure, to match the growth of current expenditure with the growth of revenues for the development of the state, having fully convinced self that governance at all levels globally, is hindered or slowed down by acute shortages of financial sources.
Aregbesola is constantly convinced that Osun could no longer afford the luxury of perpetual dependence on the central government inadequate finances which either have dangerous implications for the state political economy even in the face of shared party identity with the centre; or had in the past, directly contributed to incoherence and retardation of the economies of the federating states in Nigeria, especially in the erstwhile Peoples Democratic Party (PDP) government at the centre.
There was thus that exigency for a revolutionary overhaul of the tax lists in Osun which Aregbesola actually did, heightened by factors of equity, revenue loss and tax administration efficiency requisite, to upsurge tax revenue from both the existing and additional sources. One of such latest sources to be intensively explored in his dive to mobilise more revenues is LUC, a consolidation of all Property and Land-based rates and charges payable under the Land Rates law, the Neighbourhood Improvement Charge law and Tenement Rates law. LUC will evolve an equitable distribution of incomes and accelerate considerable equity between tax payers in the different income groups and same income groups.
Regrettably, however, the tax structure in the PDP days in Osun was not only abysmally regressive if tax payments were related to the benefits received from the government expenditures. Those who plundered Osun vaults in the PDP days in government were invariably the people in high income position who transferred tax revenues from the low income group to themselves, with obvious regressive consequences. Horizontal equity was also violated in the sense that fraudulent officials transferred income to themselves from honest tax payers in the same income group as themselves.
In summation, instead of using the tax expenditure mechanism to redress income inequities, the PDP government in Osun actually deployed its own paradigm that accentuated them. The PDP government in its widest imagination, never consolidated revenues from sources for assessment purposes. The state was considerably under taxed most effectively in terms. Worst still, the degree of tax evasion was so high, and mal-administration so pronounced that the taxable escaped tax net, that brought the average effective tax rate in the state to its nadir.
Why LUC in Osun? Land use charge is practically most useful to tool-up equity among tax payers, directly attuned to the re-distributional objectives and persuasive resource allocation effects of Aregbesola’s All Progressives Congress (APC) government in Osun. LUC is a single most salient source of internally raised revenue that will help solve the problem of expanding urban service system at low cost, judging by the forces of rural-urban migration with accelerated effect on the growth of properties/buildings in the urban centers.
In Osun, the LUC demand notice has gone ‘viral,’ it is everywhere, here and there. The assessed value of the property in the designated areas of the state is subject to land use mill rate, determined by the annual amount of LUC and the assessed value of the property – its classification, land parcel in square meters, land value rate, building quality, building value rate in the neighbourhood; and property code rate, with a view to reinforcing both growth and equity in Osun.
LUC is administratively simple. The authorized assessors are to enter, inspect, survey and assess the property; and issue LUC demand notice and deliver it to the owner/occupier of the property for payment to be made within 90days in any of the designated banks specified in the demand notice. The LUC payment slip carries annual demand notice number, identity number, revenue code, local government code, and the amount payable or paid. What’s ultimately required is that the payer drops the bank copy of the LUC payment slip at the bank, and the other copy deposited at the LUC corporate office, or in the state Ministry of Finance, Osogbo, state capital.
Interestingly, there is discount if the property owner/occupier pays within 40days of receiving the demand notice, and a corresponding 10 per cent increase in the amount payable when the property owner/occupier fails to pay the LUC demand notice within the specified period. It is more interesting that, by fiscal analysis, LUC in Osun is a source of financing public services in the state. It is one basic exchange, with the payment of the land use charge by property owner being traded for public goods and services for accelerated development of the state.
The LUC in Osun is progressive; and on the right track, exempting substantial properties/ buildings used exclusively as Oba’s palace, public library, public cemetery, public worship, public recreation, non-profit making educational institutes, non-governmental organization work; and any other property being used for benevolent purposes owned by the state, local and federal governments, or any property specifically exempted by the state governor by notice published in the state government official gazette. But the exemption ceases when the use of the property or its use by the owner /occupier changes to one that does not qualify for exemption.
There is a warning. If the payment is not made on non-exempted, but assessed property after 365days, then the property becomes liable to receivership by the state government, and such property under receivership will be advertised in national newspapers. But the owner is entitled at any time to apply for a release of the property upon payment of the outstanding taxes, penalties and administrative charges. However, property owner could go to the LUC Assessment Appeal Tribunal, convinced of excessive assessment of his property. The tribunal, with powers akin a Magistrate Court’s could subpoena the appellant’s witnesses to appear before it, and also has power to confirm, reduce, increase or annual the assessed value and rule that payment should be made into the state government Assessment Appeal Account.
Meanwhile, the property owner/occupier who mutilates, damages or destroys the LUC identification placed on assessed property/building, or incites another property owner to misrepresent his chargeable capacity, commits an offence, attracting a maximum fine of #100,000 only or a term of 3months imprisonment, or both. Payments of all such monies including actual LUC demand notice, outstanding taxes, penalties and administrative charges are made on Electronic Banking System of Revenue Cycle Management (EBSRCM) platform, and automated receipt and bank teller obtained.
Good enough. The government of Aregbesola is a government of bio-metrics in all matters and in all circumstances. The government is not inhibited by inadequate availability of data and documented information on the extant buildings in the state. In fact, cadastral maps of properties/buildings in Osun are available on finger-tips, considered requisite for LUC identification and assessment. Neither is Aregbesola stifled by inadequate manpower situation germane to the operational efficacy of LUC. Rather, he’s brimful of emulsifiers for the evaluation of the effectiveness of LUC with no encumbrances to Osun economy.
The expedient LUC could be expanded to inaugurate site value taxation, vacant land taxation and property transfer taxation on land development to induce land use effect, and importantly as revenue raising measure. Such expanded LUC will publicly recover land value increase or land betterment value and influence better planning of land development in the Osun.
The LUC is a must tax to pay.
- OLUSESI is Assistant Director, Directorate of Publicity, Research & Strategy, All Progressives Congress (APC) State of Osun.
The Ogun State Internal Revenue Service (OGIRS), said that the agency generated more than N33 billion from January to August 2017.
This was said by Mr Adekunle Adeosun, the Chairman, OGIRS. He made this known during an oversight visit of the State Assembly’s Committee on Finance and Appropriation to the agency’s head office in Abeokuta.
He said that the amount generated with the eight months under review was part of the estimated revenue of N41 billion approved for 2017.
According to him, the agency has already recorded 81 per cent performance.
The chairman stated that of the N33 billion generated by OGIRS, N31.6billion came from personal income tax, more than N1.2billion from withholding tax, and N318.5million from road tax.
“Some of the revenue also came from property tax, pools and lottery, levies and also from registration and other miscellaneous collection,’’ he said.
Adeosun explained that the achievement recorded in the area of huge revenue collection could be attributed to regular tax education and enlightenment of the public by the state government
According to him, the enumeration of existing and potential tax payers also contributed significantly to the success recorded.
“We do not have any interference from the governor of the state on the issue of tax collection which has significantly contributed to the success of OGIRS in its aggressive revenue drive.
“It could also be attributed to collaboration and exchange of information with Federal Inland Revenue Service (FIRS) and aggressive tax drive within the confine of the law.
“Low level of voluntary compliance by self employed individuals and informal sectors and paucity of funds to buy operational vehicles are some of the challenges we are facing in OGIRS,’’ he said.
Responding, Chairman of the state assembly committee, Mr Akanbi Bankole, congratulated the management of OGIRS on the huge revenue collected.
Bankole, however, charged the management of OGIRS to expand the revenue base of the state with a view to delivering more dividends of democracy to the people.
He urged OGIRS to ensure that carried members of the Ogun assembly along in the execution of some of its policies and programmes to improve the relationship between the lawmakers and the agency.
In continuation of an inter-ministerial enforcement exercise embarked upon by Osun Internal Revenue Service in order to comb the state of tax defaulters, some private establishments have been shut down, with a view to recover taxes, levies, rates and other remittances due to the state.
According to the Special Adviser on Tax and Revenue Matters, Mr. Jimoh Akano, the affected establishments include: Banks, Event Centres, Rental Service Providers, Cool Sports, Pools, Lotto Offices, Sport Betting Houses as well as privately owned Primary, Secondary and Tertiary Institutions across the State.
A statement by the Information Officer of the OIRS, Wasiu Babalola said, some of the establishments shut were, Keystone Bank, Bank of Agric, Industrial and General Insurance Company (IGI), Victoria Medical Centre, Koseunti Maternity Home, Adeola Convalescent Home among others in Ilesha Zone.
In Osogbo Zone: God Favour Hospital, Triumph Medical Centre, Ife Olu Medical, Searchlight Laboratory, while in Ife Zone: Victory life Eye Centre, Gigles Dental Clinic and Maye Hospital among others were sealed.
Prior to this enforcement stage, Akano said, the agency had made special efforts to enlighten the populace of the civic duty of every income earner to be patriotic to state’s calling and see tax payment as an uncompromised responsibility.
He said, “the shutting down of the establishment was a follow up to the enlightenment.
Also, the Acting Chairman, Osun Internal Revenue Service, Mr. Bicci Alli said, the people of the state had earlier been notified of the on-going enforcement exercise, saying, “nobody is caught unaware”.
He reiterated that OIRS would no longer hesitate to take legal action against tax defaulters and tax evaders that fail to perform their civic responsibility to the state government interms of tax payment henceforth.
Noting that the law is clear on issues bordering on taxes and levies evasion, he insisted that the OIRS would continue to take advantage of the provisions of the law to prosecute recalcitrant corporate organisations and individuals without further notice.
The state of Osun Governor, Ogbeni Rauf Aregbesola received in audience his counterpart from Lagos State, Mr Akinwunmi Ambode on Thursday 20/7/2017 at the Governor’s office, Abere. Osogbo.
Ambode who came on a courtesy call spoke on the need for the region to harmonise and speak as one united entity.
The two helmsmen agreed that as a federation, the survival of Nigeria economic is hinge on capacity for sustainable Internally Generated Revenue drive.
See photos of the visit………
Governor Rauf Aregbesola (5th Left), Governor Akinwunmi Ambode (4th Right), Senator representing Osun Central, Prof Sola Adeyeye (4th Left) and other Osun cabinet members.
Osun state Artisans Association has reiterated their unflinching support and cooperation to the state government on the generation of Internal Generation Revenue, IGR.
The Association through its state Chairman, Alhaji Kareem Owolabi said, Aregbesola has transformed the state tremendously with the limited resources available.
Owolabi, while addressing the newsmen in Osogbo said, the association would not relent in assisting the government in collecting the revenue while all the members of the association will also be an obedient servant to that effect.
The Artisan leader who informed that, the present administration in the state has contributed in no small measure to the upliftment of the artisans in the state emphasised that, the association was able to collect the sum of N1.6m for the state government as revenue last year saying, they will double their efforts this year.
Owolabi, who lamented that the association has been marginalised by the state government strongly appealed to the governor, Ogbeni Rauf Aregbesola to assist them in transforming the association as they are solidly in support of the incumbent administration in the state.
His words, ” the government is trying in the area of infrastructural development in the state but they still need to carry the artisans along.”
The Chairman noted that, the artisan workers Association in the state need more of government intervention in the area of office equipments that would made the association more viable in supporting the government in the area of tax collection.
He maintained that, the association needs utility vehicles that will enable them to move around in assisting the government in the area of tax collection.
Owolabi, also said, the association will be elated if the government can provide soft loan for the artisan workers as a body, saying this will cushion the hardship of it’s members.
The Dum Online
Kano State Government northwestern Nigeria has projected to realize a total sum of 5 billion naira per month as internally generated revenue for the state in the year 2017 and hope to raise it to 10 billion naira in the year 2018.
This was disclosed at a ceremony at the Kano government house where 765, newly employed staff of the Kano state Internal Revenue Service, KIRS, where presented with certificate of employment.
The state governor Dr. Abdulahi Umar Ganduje urged the people of the state to endeavor to key into the IGR scheme and pay as there was no alternative to providing good governance to the people as oil revenue dwindles.
He said as the state extends the tax net for the benefit of everyone, all hands must be on deck for effective performance assuring that there will be commensurate development with all taxes paid.
“The more tax you pay, the more project you will see on the ground, it will enable us as government to responsibly improve development in the area of health, education, infrastructure, environment among others.
The Executive Chairman of the Federal Inland Revenue, FIRS, Babatunde Fowler urged Kano people to pay their tax promptly as the state is currently the fastest growing state in the country in terms of tax net widening. “The state is also number one on the register of individuals registered for tax collection with over 900 thousand.”
He expressed hope that Kano state can meet its targeted revenue with seriousness from the newly employed staff.
The speaker of the Kano state house of Assembly Kabir Rurum assured the employed staff that despite amendments that have been made to tax laws in the state in recent times to ease their work, the law makers are ready to do more to enhance work.
He urged them to familiarise themselves with the law to enable easy and confident approach to taxpayers as some tax payers would want to resist payment.
The Kano state currently generates 2.5 billion naira up from the 1.3 billion naira it was generating per month 2015.
Government of the State of Osun has expressed optimism that it would conveniently hit N2 billion as Internally Generated Revenue (IGR) in the next two months.
The Acting Chairman, Osun Internal Revenue Service (OIRS), Mr Dayo Oyebanji, who stated this in an interview with OSUN DEFENDER on Tuesday, said, the target in the next few months would be N5 billion per month.
He said, by the time the state government hits its target of N5 billion target, it would be easier to finance its programmes and policies with IGR without any fund from the federation account.
He said the agency has put a platform in place for immediate and sustainable revenue generation in the state that would enable government meets its target. “When you put a platform in place, you will notice there is steady growth in number and value in the revenue base of the state.
“In the last few months, we have seen steady growth in number of tax payers, which ultimately will translate to significant increase in value.
“Within the next two months, we should comfortably be on N2billion. The target of the government is N5 billion per month and that is the only time the government can say, we don’t need Abuja to survive.
“When Governor Aregbesola came into office, the state was generating about N300 million monthly,
inclusive of the state PAYE, that means, effective inflow from other sources at that time was barely around N100million.
“With the system that we have put in place, like the Revenue Administration Law, the blockage of leakages, the automation of revenue collection that now makes all revenue go to the coffers of the government, the revenue first moved to N600 million and at a time when there was oil boom, it moved to N1.5 billion.
“Therefore, because of the economic situation in terms of average, we are operating between N800
million and N1 billion now. Our focus is to hit not less than N5 billion in the next few months. So, we have the structures in place that we can work on to generate more revenue to the coffer of the state.
“For us in Osun, for informal sector, the minimum tax payable is N1,000 and development levy is N500, that means you pay N1,500 per annum.
“For you to collect tax certificate, you must have paid taxes for three solid years, plus current year, which is N6,000. It is not compulsory that you pay at once, you can do staggered payment and when you complete the payment of N6,000, we will issue tax clearance certificate, but as you pay, you collect your receipts,” Oyebanji said.
The OIRS boss, who described taxation as the peak of representation in government, said when this principle is there, it reduces corruption to the barest level, saying, “that is when you will see that the growth in taxation will be a proposal to the growth in the economy.”
According to him, now that the external money from federation account was no longer coming, it is the responsibility of the people to support government to sustain its developmental programmes and policies.
He also urged institutions that have been running away from paying their dues to the government to be up and doing, saying, the state government would not derive pleasure in shutting down private investors for failure to fulfill their civic responsibilities.
On what he called misconception that pupils of public schools were being asked to pay taxes outside the ones being paid by the parents, he said no pupil was asked to pay any tax.
According to him, parents of the pupils were the ones expected to provide copies of their tax clearance certificates and give to their children to confirm that they have exercised their civic responsibilities.
“Students are not to pay or present their tax clearance certificate; it is only the tax clearance certificates of their parents that the schools would have asked for and that is what is operational in every society,” he emphasised.
Osun State government has charged all shop owners and operators in the state to register their business premises and pay their taxes regularly in order to boost its Internally Generated Revenue (IGR).
Shop owners, market men and women and artisans are to register with the Ministry of Commerce, Industry, Cooperatives and Empowerment and everyone would be billed according to size of their premises. Defaulters, according to the Osun Acting Chairman and Chief Executive Officer (CEO) of Internal Revenue Service, Mr. Dayo Oyebanji, would be made to face the full wrath of the law.
This, he said, would in no small measure assist in waging war against the dwindling allocation from the federation account to states. He, however, disclosed that the agency has “embarked on mass campaign rally to convince residents of the state on the need to pay for their business premises and other taxes.”
Oyebanji continued: “The exercise of the revenue agency, would not amount to multiple taxation as there are laws to back every money collected from people of the state. “Aside from generating revenue into government’s purse, business registration would also enable government to have adequate planning data which would enhance development in all parts of the state”.
“The government will as well work towards improving the level of voluntary compliance of people on tax payment for immediate and sustainable growth of the revenue base of the state”.
Also, Coordinating Director in the Ministry of Commerce, Industry, Cooperatives and Empowerment, Reverend Abimbola Osho said the move would complement developmental programmes embarked upon by the state government towards making life more comfortable for the people.