The Chairman, Ekiti State Internal Revenue Service (EKIRS), Mr Olumuyiwa Ogunmilade, has denied reports that traders at the popular Fayose market in Ado-Ekiti were asked to pay between N20,000 and N30,000 as tax.
It will be recalled that traders in the market had expressed displeasure over what they described as outrageous demand of tax from the government.
While describing the claims as untrue, he noted that little or no tax has been paid to coffers of the present All Progressives Congress-led government in the state by the over 1,000 traders in the market.
Ogunmilade who spoke in Ado-Ekiti, on Monday, said: “The practice in most markets, where the association pays a token annually as taxes on behalf of the market, is not only inaccurate for government to know who pays and who does not pay but also gives room for such associations to shortchange the government since there is no transparency on how much is collected from each shop or tenant.”
The revenue boss stressed that the Tax Law states that only individuals or corporate organizations must pay taxes and there is no law that empowers associations to pay taxes on behalf of its members.
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According to him: ” We held initial talks with the executives of the market on the need to regularize tax payment with Fayose Market Association in May 2019 after which we explained the need to carry out an enumeration exercise to determine taxable assets and persons, which the association agreed to and was carried out after which various amounts were issued to the shops based on the estimated value of stock and transactions determined by on-the-spot evaluation.
“The right to object to the assessment within 30 days of receipt is clearly stated on the demand notice. (Meaning they can object or pay within 30 days of issuance).
“They got the Assessment form and didn’t raise any objection but refused to pay within 30 days as stipulated in the form.
“When EKIRS threatened to proceed against them, they resumed dialogue.
” At one of the meetings, EKIRS agreed on a minimum concession of N5,000 (five thousand naira) per annum per shop.
“The Association insisted this was still too much. They wanted to pay 2, 000 but the government is asking for N5, 000 naira only per annum which it believes is not too much for shop owners and tenants in Fayose Market.
“That amount per annum is just N416 per month. That is just N16 per day. Is that too much to pay as taxes in a market where business transactions of millions of naira are conducted daily?
” The refusal to pay N5, 000 per annum per shop is what led to the EKIRS Enforcement Action on Friday, December 13th at Fayose Market, Ado Ekiti.
“All other narratives are falsehood and propaganda to distract the people’s goodwill and attention from the Fayemi administration’s efforts to make Ekiti work for every citizen.
” The private and informal sector of the economy must be captured in the tax net because they benefit from facilities like schools, hospitals, roads, markets and all other social infrastructure projects built and maintained by tax payers’ money.
” Salary earners in Ekiti State pay more than 80% of the tax income of the State yet they are less than 1% of the population.
“Is that fair? Are they the only ones earning an income? Some traders and shop owners in Fayose market make in one week, what a civil servant earns in one month, yet they are resistant to pay their fair share of taxes to government.”
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