To overcome challenges associated with multiple taxation, Delta State government has commenced the process of harmonizing its tax laws, Sir Monday Onyeme, FCA, has said.
Onyeme who is the Deputy Governor of the state, made the disclosure on Wednesday in Asaba when members of the National Association of Micro Finance Banks, (NAMB), Delta State Chapter paid him a courtesy visit.
According to him, multiple taxation was inimical to the development of the private sector.
“One request that you have made is for the state government to address the issue of multiple taxation and I want to inform you that such is already in process.
“Multiple taxation as it is termed, is one area that people complain about in almost all the states of the federation because we are running a Federal system of government, where you have what we call three layers of government; we have the local government, the state government and we have the federal government.
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“According to the law, Federal Government have their taxes, state government have theirs and local government have their taxes and each of these layers are supposed to tax organizations that are operating within their jurisdiction.
“If you meet the professionals, they will be able to tell you that this is the local government tax, this a state tax and this is a federal government tax, but in practice it is not very easy to differentiate such.
“I am able to say this because, I was once operating in that sector, so, you find local government coming to ask you to pay for certain taxes and the state government will still come back for the same tax and this is where some of the issues arise.
“I do know that the state is in the process of harmonizing its taxes and if passed into law, you will not be seeing these people coming to demand for tax, you will only get one demand notice per annum and with that demand notice you will pay whatever has be prescribed there.
“With this, the state government will know what portion of the tax that will to local government and what portion goes to the Federal government, and I think that will solve a lot of problems associated with multiple taxation,” the Deputy Governor said.
Earlier in her address, the Chairman of the National Association of Micro Finance Banks, NAMB, Delta State chapter, Mrs Evelyn Ugute, said that the visit was to congratulate the Governor of Delta State, Rt Hon. Sheriff Oborevwori and his Deputy, Sir Monday Onyeme, FCA, both for their victory at poll and the Supreme Court.
Mrs Ugute said that Microfinance Banks which are well over 16 in the state had contributed immensely to the Gross Domestic Products of the state through youths empowerment from their transportation scheme, effectively reducing unemployment.
She said that Microfinance Banks also provide employment to graduates, empowering entrepreneur and support for the development of the agricultural sector across the state.
The group while commending the state government for its development plans, requested for tax relief to foster growth, sustainability and ease of doing business in the state.
READ ALSO: Delta State targets N12bn monthly IGR, moves against tax evasion
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