Kastina state government is on the move. This time, it is to generate more revenue from its tax operations to fund its annual budget. As identified by the state government, the way to do this is to bring back the community and cattle tax system to the state.
It was learnt that this decision was arrived at after taking a detailed survey of the 34 local government areas in the state with a view of sensitizing and sampling the opinion of the people on the new way forward to revamping the state’s dwindling resources.
Deducing from the statements of the state’s governor, Aminu Bello Masari during a courtesy visit by a team of delegates from the Tax Appeal Tribunal of the Northwest Zone during the week, the expansion of the state’s tax net will also help to tackle the problem of data beyond tax as according to him, a major cause of the protracted insecurity in the north is due to lack of adequate data which the exercise of capturing residents for the re-introduced taxes will solve.
What good is a new tax direction if the system lacks efficiency? This must have been the mind of the Kastina Government when the governor also assured that his administration is coming up with a reform to improve the activities of the state Board of Internal Revenue and other relevant agencies.
The governor’s take on the need for states to look inwards to improve the revenue base
“The current revenue allocation formula from the federation account may not continue forever, hence the need for states to devise measures and alternative sources to stand on their feet,” he concluded.
On tax tribunal
Commenting on the importance of airing tax grievances in the court, the governor noted that the existence of the tax appeal tribunal is quite important for both tax administrators and payers to creating awareness on the issue of taxation for economic growth.
The need for adequate sensitization of the people on the activities of the tribunal to enable it to achieve the desired objective was also stressed by the governor.
Other states taxing unusually
- Recall that earlier this year in a 2020 review article, Taxmobile.Online reported that the Ekiti State Government has implemented a mandatory property tax for landlords and landowners all in a bid to shore up its resources.
- In the same review, we reported that Lagos State as the commercial nerve of the country in August 2020 after close consultations with chieftains of Performing Musicians Employers Association (PMAN) and Lafrique Promedia will now tax up to 5% on all audio and visual contents from licensed content producers.
- Adamawa state is not left out as in a bid to augment its ₦12.1 billion Internally Revenue projection for funding the 2021 budget, it re-introduced payment of cattle-tax intending to improve livestock markets in the state.
Our Two Cents
Whether on landed properties, creative contents, or even cattle, it is clear that state governments across the federation are leaving no stone unturned to revive the dwindling economic fortunes of their state by expanding the taxpaying net.