Friday, October 24, 2008
Anambra to impose tax on luxury home owners

By Emmanuel Obe, Awka

The Anambra State Governor, Mr. Peter Obi, has asked tax collectors in the state to go after owners of luxury homes to boost the state's internally generated revenue.





The Governor spoke in Awka on Thursday while presenting 10 new vans to the Bureau of Internal Revenue Service.

He said there was no reason why the state, with well-endowed residents, would be complaining inability to generate enough revenue to pay for government's services.

"I want you to be able to cost those big houses and give them appropriate tax to suit the lives they are living," the governor said.

"Owners of luxury cars and people with opulent lifestyles will soon come under the searchlight of the taxman," he said.

Obi said the state government could no longer rely on federal allocation to pay for its services and finance its projects.

He, therefore, asked the bureau for internal revenue to make sure that it generated N1bn monthly henceforth.

He said if Lagos and Rivers states could generate N18bn and N23bn respectively, there was no reason why Anambra should not join in the league of billionaire states.

The Commissioner for Finance, Mr. Eze Echesi, said the BIRS would soon be automated in line with modern revenue collection standards.

In a similar development, Bauchi State Governor, Alhaji Isa Yuguda said that the era of complete reliance of the state on federally allocated revenues had passed, as his administration had evolved new ways of looking inwards to increase its revenue base.

He said that Lagos could boost its IGR from N600m monthly, Cross River, with lower population and commercial activities than Bauchi, could also realise over N2bn.

Yuguda said his state generated only about N150m adding that this situation must be reversed.

A statement by the Director, Press and Public Relations to the governor, Mr. Maigari Khanna, said Yuguda also warned civil servants who connived with tax payers to defraud the government to change or be dealt with.

The governor said that his administration, having inherited an empty treasury, a failed system and decayed infrastructure, was determined to leave a clean balance sheet at the expiration of its tenure.

http://odili.net/news/source/2008/oct/24/440.html

I've wondering why our govt turns a blind eye on property owners. It shouldn't be for only luxury homes but for every property like they do it in the US.

PepERSprAY:

I've wondering why our govt turns a blind eye on property owners. It shouldn't be for only luxury homes but for every property like they do it in the US.

huh nigerians do pay property taxes, your property would be sealed off by council if you don't

The Governor should start with himself first.

huh nigerians do pay property taxes, your property would be sealed off by council if you don't

i'm not sure it's applicable everywhere in Nigeria. If it is, this governor shouldn't be clamoring for it. You think the northerners pay taxes on their properties every year? Think again.

PepERSprAY:

The Governor spoke in Awka on Thursday while presenting 10 new vans to the Bureau of Internal Revenue Service.

He said there was no reason why the state, with well-endowed residents, would be complaining inability to generate enough revenue to pay for government's services.

This is why i dont believe such tall tales. Policy statements are not things you just say when you are commissioning something or making a public address. they shld be well thought out proposals that have been exhaustively debated at the public level and with state representatives.

Our politicians dont take governance seriously at all and its a shame.

PepERSprAY:

i'm not sure it's applicable everywhere in Nigeria. If it is, this governor shouldn't be clamoring for it. You think the northerners pay taxes on their properties every year? Think again.

as if nigerians in every region don't evade tax. get serious

All of them always inherit an " empty treasury Politicians sef
@Topic,he should lead by example,start with himself and his deputy.

Am I the only one who thinks it scary that the reason for the tax seems to be mainly to fill up the "EMPTY TREASURY"? I don't know what these people already pay but is this really necessary? Aren't there other revenue generating means out there for this government? ROFLMAO!!

Am I the only one who thinks it scary that the reason for the tax seems to be mainly to fill up the "EMPTY TREASURY"? I don't know what these people already pay but is this really necessary? [b]Aren't there other revenue generating means out there for this government? [/b]ROFLMAO!!

What do you mean by other means?. Don't they also have other means of generating revenues in America but this it stop the counties from collecting taxes. I don't know what the big deal is here. If you ask a landlord that has a big two storey building to pay 25K annually for taxes, is that too much to ask?. can you please elaborate on other means you are referring to and tell us why property tax is not important?. ROFLMAO!!

Kobo
You probably might have made some positive comments about some steps taken by a Nigerian leader but I am sorry I have not seen any.

remember Peter Obi is not running for the white house

as if nigerians in every region don't evade tax. get serious

We do?

DavidDylan:

This is why i don't believe such tall tales. Policy statements are not things you just say when you are commissioning something or making a public address. they shld be well thought out proposals that have been exhaustively debated at the public level and with state representatives.

Our politicians don't take governance seriously at all and its a shame.

Very good point.

PepERSprAY:

What do you mean by other means?. Don't they also have other means of generating revenues in America but this it stop the counties from collecting taxes. I don't know what the big deal is here. If you ask a landlord that has a big two storey building to pay 25K annually for taxes, is that too much to ask?. can you please elaborate on other means you are referring to and tell us why property tax is not important?. ROFLMAO!!

As someone already pointed out to you earlier, government ALREADY taxes property owners even in Nigeria. So increasing property taxes simply to increase revenue is to me ridiculous. There has to be more information to justify such a move. We all see LUXURY and immediately some are already demanding they pay more just because. How does the government define LUXURY today? Who is to say it does not shift in the future just cause?

As for revenue generation, there are so many ways for government to generate revenue to fill up it's shed. Tax increase really needs to be last resort and has to come with solid reasons.

agaba123:

Kobo
You probably might have made some positive comments about some steps taken by a Nigerian leader but I am sorry I have not seen any.

remember Peter Obi is not running for the white house

What has WHITE HOUSE to do with this story? Can I not DEMAND the same treatment from any government, no matter if WHITE HOUSE is involved or not? What the frell do you even mean by your first statement there? Are you in some way implying that I OWE Nigerian leaders some good words or something? I am sorry but I do not think as you do so maybe the problem starts with you assuming I should praise those who you seem to have praise for.

Kobojunkie:


What has WHITE HOUSE to do with this story? Can I not DEMAND the same treatment from any government, no matter if WHITE HOUSE is involved or not? What the frell do you even mean by your first statement there? Are you in some way implying that I OWE Nigerian leaders some good words or something? I am sorry but I do not think as you do so maybe the problem starts with you assuming I should praise those who you seem to have praise for.

Yea sure you do not think the way i do and you are entitled to your opinion so do I.
If you want to know what I meant by my first statement is that even when they do what you would recommend in normal circumstance, it becomes evil because to your mindset, nothing good can come out of Nigeria

As someone already pointed out to you earlier, government ALREADY taxes property owners even in Nigeria. So increasing property taxes simply to increase revenue is to me ridiculous. There has to be more information to justify such a move. We all see LUXURY and immediately some are already demanding they pay more just because. How does the government define LUXURY today? Who is to say it does not shift in the future just cause?

As for revenue generation, there are so many ways for government to generate revenue to fill up it's shed. Tax increase really needs to be last resort and has to come with solid reasons.

Did you read the article?. it is obvious from that article that property taxes are not in effect in every state. It's definitely not in effect in Anambra state and that is why they are proposing it. How do you define luxury? The same way govt defines it on imported goods before charging them VAT. The same way they define property values in America and charge the taxes accordingly. You think the do not have estate valuers in Nigeria?. Did you live in Nigeria at all? Jeez.

PepERSprAY:

Did you read the article?. it is obvious from that article that property taxes are not in effect in every state. It's definitely not in effect in Anambra state and that is why they are proposing it.

What line in that article CLEARLY STATES this?

PepERSprAY:

How do you define luxury? The same way govt defines it on imported goods before charging them VAT. The same way they define property values in America and charge the taxes accordingly.

Have you actually seen the VAT charges on so called LUXURY items? You really believe the charges are reasonable??  Ever wonder why things are so expensive in Nigeria? Why second hand, and low quality goods continue to experience a boom in that country??

PepERSprAY:

You think the do not have estate valuers in Nigeria?. Did you live in Nigeria at all? Jeez.

Where does it state in the article above that the tax increase is based on the numbers from Estate Valuers?? Where is that reason given above??

What kind of politicians/governors do we have in Nigeria?
You don't just open your mouth and say anything just to excite people. What figures is this governor basing this tax proposal on? If Nigerians already pay taxes on properties, where are the facts and figures which would form a basis for property tax increase?

* What is the state government's definition of "luxury properties"? Is it by cost of building it, the looks of it, the content of the property or by a valuation from estate valuers?

* if you are going to raise property taxes on Anambra people, it will have to be across the board (not just "luxury properties", because that'll amount to a witch-hunt). That's assuming we finally arrive at a definition of "luxury" before this governor's term expires. You cannot decide to go after someone because they happen to be successful in life. Most of them have worked hard to be able to afford the property and you want to punish them for it?

* Instead of starting a witch-hunt, why not sit down and come up with more with more creative ways to raise taxes without over-burdening the good citizens of Anambra State?

Instead of trying to become a "billionaire" state (as he puts it), please think of more creative ways to positively affect the lives of the citizens of your state.

I like the fact that he is trying to break free from reliance on federal government funding (because it causes more problems than it solves), but he should do it in a more structured and creative way, not by going after "luxury property" owners.

My family immediate member was a governor of one of the eastern states for eight years from 1999. When met him once in London I proposed so many tax policies that can help him raise some cash to finance a free primary/secondary education his domain and they are:

(1) Property band demarcation/tax:
Where every property should now be mapped in flats, houses, Bungalows and duplex, that means a house that has eight flats can now possible be owned by eight different individuals and be taxed on that band also based on number of rooms a flat or a house contained. It mean a person can now buy a flat within a house and this will not only raise coffer of the state but bring the state to the 21st century of property ownership and can alleviate housing suffering and make it possible for low income people to be able to own where they live without buying a whole house.

(2) Introduction of Priviledge Tax:
This tax bracket will target owners of titles like chieftancy and hononary degrees and other ego trip awards. I proposed that all awarded chieftaincy titles will encure a tax of
100,000 naira for the first title and subsequent title will encure 40,000 each per annum. That mean if a man was awarded say five chieftaincy title from communities within the state, annually the person will cough out a total of 260,000 naira for such a luxury or denounce the title in the state owned newspaper. The use of such title without paying for it will bring a maximum of 1 year in jail and a fine of 200,000 naira.
All university hononary awarded degrees will now worth 50,000 annually in tax or don't accept them. And before such an honor or chieftaincy is awarded, the traditional ruler or the university authorities awarding it should seek clarifcation as to the decency statu of the beneficiary from the EFCC for example.

But the governor looked at me not only with amazement but bemused because he has no idea that money can be raise from various sources rather than crossing leg waiting for the end of the month to come to go to Abuja for the monthly bonanza ritual. He did say that his house of assembly will not vote for it because many of them are chiefs and my reply was that you should blackmail them with the idea of free education and pitch them against their people as enemies of progress and let the state TV and radio covers own is for it and who is against the bill. Which bring me to the point that Nigerian democracy is just govt for some people, by some people and for some people.