Cross River focuses on expansion of tax base, not tax increase

The Executive Chairman of Cross River State Internal Revenue Service (CRIRS), Mr Akpanke Ogar, has announced that the Service would focus more on expanding the tax base by getting more payers into the tax net, rather than increasing taxes.

Ogar, who reiterated the policy direction of the revenue body under his chairmanship said that the direction was in line with the Tax Exemption Policy of Governor Ben Ayade.

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 a population of over 3million in the state, “the revenue office projects that there may be about a 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 taxpayers, stating that “our aim is to increase the number in the tax net, not increment of taxes”.

The Chairman noted that the Tax Authority was correspondingly pursuing, with vigor, the implementation of the governor’s Tax Exemption policy in collaboration with the State Anti-Tax Agency.

The collaboration, according to him, had assisted in the identification, categorisation, and classification of beneficiaries of the policy and their exemption from paying taxes in the State.

Ogar 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, the Service had tuned into the mood of the economy stating, “now the economy has started picking up we are aiming to sensitize and enlighten taxpayers 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, would assist voluntary compliance and help grow the taxpayer size in the State.

“For instance, if you are in the 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-19 had eased off and that there was no plan to increase taxes in the state even though the state government lost revenue in billions due to the pandemic.

“Rather we are trying to expand the tax base by getting more payers into the tax net. Our focus 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”, he added.

Also speaking, the National President of the Chartered Institute of Taxation of Nigeria (CITN), Mr. Adesina Adedayo. Who was represented by Samuel Agbeluyi, the Vice President of the Institute, as well as the Calabar and District Society Chairman of the CITN, Comrade Akpa Ogon, noted that the CITN had 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 was the need for people to voluntarily comply with tax law policies and requirements.

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

“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 have not paid. If you comply on time, the government will have money to execute projects,” Ogon stated.

He maintained that on the part of the government there was the need to show prudent management and transparency in tax revenue and earnings because that would help to improve voluntary compliance in tax payment by taxpayers, reiterating, “but first, the taxpayers must pay”.

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