Anambra and Abia state governments will always have issues raising their IGR as fast as other states because their economy is driving by commerce, it's pure a commerce-based economy that has to do with People having to import products almost always to help fill the production deficit in the country. It's operated by an open market system that is very difficult to regulate and tax.
Unlike the service/production based economy you see in oil producing states and southwest. These economy are easier to regulate hence taxing them will not be a big issue.
Imagine a market like Ariaria and Unilever plant in Sango Otta or shell facility in Warri. It will be much easier to tax those facilities in Warri and Otta than taxing Ariaria market because there's a regulatory challenge for the latter. Because you are dealing with importers who move goods to retailers, you can only rely on tarrifs or taxing them for shop and warehouse spaces. Most of these tarrifs never get to government coffers. Tax leakage is a major problem with an open market commercial based economy.

Those markets actually make a lot of money but these monies remain in the hands of citizens instead of the government because it's hard to properly tax such forms of transactions. Imagine Onitsha market, it's like a major commercial centre for neighboring states like Enugu, Kogi, Benue, Delta, rivers, Akwa Ibom, Ondo and even Edo state and even beyond. It means that people in these states, especially the oil producing states will need to get the funds from oil, take those funds to Aba or onitsha to buy goods from importers to service the needs in their various states but at the end of the day, it becomes a problem for Abia state and Anambra to tax these transactions.
At the end of the day, funds will flow from other parts of the country to these states. Most of the funds will remain with the traders and importers because of the nature of their economy and then government will be left with the little it managed to collect.

In service and production based economy like in southwest and Southsouth, you know all the companies you will tax, they will file their returns and do the needful without stress. All you have to do is keep proper records and prosecute those who evade these taxes. Some of the money that would have been in the hands of individuals will go to the government.

This is why CBN included Abia and anambra alongside Rivers, Lagos and FCT as states with the largest cash flows in the country. The money is available because they are a major commercial hub for neighboring states but their state governments are unable to tax them.

You are right

Your assertion is not far from the truth

You just need to learn how it’s done in other countries, not rocket science

Taxing businesses in Anambra and Abia states are easy with right government in place.

You just need to implement local tax policies and the right technologies.

Track imports and supply chains to enable government predict local sales revenue from businesses

Also, empower tax consultants to work with local businesses to ensure compliance

For example, if company A buys goods worth 500K and reports that in their tax filing so they could get a tax break, but you fail to report the revenue in your tax filing, there’s already a disparity that warrants invitation from government which could result in huge penalties or even imprisonment.

The government should expand the markets and then tax all daily visitors to the mkt

richidinho:
The government should expand the markets and then tax all daily visitors to the mkt

The government need to operate a system to block all tax leakages first.

Since these markets are a potential source of income, they need to invest in infrastructure that will enable them to get almost all tax by removing rogue tax collectors by local government rascals, then institute digital systems both within the market and at the entrance the market to tax every truck entering and going out with goods from the market. If they have do this, they would have ended up blocking serious tax leakages.

But those companies you mentioned are also in Abia State?

LadyExcellency:
But those companies you mentioned are also in Abia State?

Yes but a state like Ogun is more industrialized than Abia state.
For state like Bayelsa, the kind of tax just one oil company pays to state account alone, can amount to what Unilever, Dangote, Nigerian breweries and nestle will pay combined to Ogun state.

Ain abia, they have Unilever, ginuess, Nigeria bottling company etc but the state is not as industrialized as Ogun state. Commerce and illegal production is still the major source that drives economy

They are irrelevant markets.

omonnakoda:
They are irrelevant markets.

lol, not really.
I will give you an example.
Ariaria is the major importer of leather and shoemaking materials in Nigeria. They import via onne, Ariaria services even mushin shoemaking market in Lagos as far shoe making materials are concerned. With these guys to fill this deficit, we will have issues.
My brother runs a shoemaking company in Lagos, most of his materials comes from Aba, so Lagos actually needs Aba to be able to service her shoemaking industry. So the market is not irrelevant.

Their government it needs to be very strategic at knowing how to block revenue leakages from those markets

omonnakoda:
They are irrelevant markets.

And again, those markets are the financial lifelines for people living in those states. It's the only way they can force for example, People making oil money in port Harcourt to bring some of the money to Abia or Anambra state

socialmediaman:
Taxing businesses in Anambra and Abia states are easy with right government in place.

You just need to implement local tax policies and the right technologies.

Track imports and supply chains to enable government predict local sales revenue from businesses

Also, empower tax consultants to work with local businesses to ensure compliance

yes exactly. But they are not tapping into the potential but its not as easy as you think.

It's like saying that you want to deal with agbeorism in Lagos markets and bus parks. It's not easy for a state government to do that.

Because you might have used some of these people to win election and then it becomes hard to remove them from the system.

FatherOfJesus:
Yes but a state like Ogun is more industrialized than Abia state.
For state like Bayelsa, the kind of tax just one oil company pays to state account alone, can amount to what Unilever, Dangote, Nigerian breweries and nestle will pay combined to Ogun state.

Ain abia, they have Unilever, ginuess, Nigeria bottling company etc but the state is not as industrialized as Ogun state. Commerce and illegal production is still the major source that drives economy

Most of these companies in Aba including Oil companies with headquarters in Lagos State pay their VATs/community obligations in Lagos State

IN THE TAX APPEAL TRIBUNAL
SOUTH EAST ZONE
HOLDEN AT ENUGU
20TH FEBRUARY 2020

APPEAL NO. TAT/SEZ/003/16

BETWEEN

SHELL PETROLEUM DEV. CO. OF NIG. LIMITED - Appellant

AND

ABIA STATE BOARD OF INTERNAL REVENUE - Respondent

https://tat.gov.ng/judgement/details.php?id=145

FatherOfJesus:
And again, those markets are the financial lifelines for people living in those states. It's the only way they can force for example, People making oil money in port Harcourt to bring some of the money to Abia or Anambra state

Those marked are not fit for a 21st century economy.
All they do is import and retail substandard products o or even dangerous drugs whilst contributing immensely to pollution.
I distinguish between Onitsha and Aba.
Aha has manufacturing potential and despite all the noise is a bigger market.Who's has just suffered from bad government
Let us assume a home grown like company like Alpha Beta comes along and is able to raise revenue to 20 billion a month would it be alright for it to get 10%?

There is a problem with that model of commerce
Everyone wants to be his own boss which means you find 200 people doing what a single company can do

How come there are no big markets in London,New York etc?
Are they worse off than Onitsha people?
Markets are becoming old school
We 're moving to an e-commerce world

omonnakoda:

Those marked are not fit for a 21st century economy.
All they do is import and retail substandard products o or even dangerous drugs whilst contributing immensely to pollution.
I distinguish between Onitsha and Aba.
Aha has manufacturing potential and despite all the noise is a bigger market.Who's has just suffered from bad government
Let us assume a home grown like company like Alpha Beta comes along and is able to raise revenue to 20 billion a month would it be alright for it to get 10%?

There is a problem with that model of commerce
Everyone wants to be his own boss which means you find 200 people doing what a single company can do

How come there are no big markets in London,New York etc?
Are they worse off than Onitsha people?
Markets are becoming old school
We 're moving to an e-commerce world

The problem in Aba and onitsha is not an Anambra or Abia state problem exclusively. It's a Nigerian problem that you even see in big markets of Lagos.

But like you said, I expect these states to set a roadmap for other states to see how to actually regulate a major market. There's no poltical will to do that.
Soludo is actually trying to do it that in Anambra state, you can see them already threatening him with one-term government. It's a Nigerian thing and Anambra and Abia state are jusr unfortunate to be so much reliant on this kind of economy

FatherOfJesus:
The problem in Aba and onitsha is not an Anambra or Abia state problem exclusively. It's a Nigerian problem that you even see in big markets of Lagos.

But like you said, I expect beese states to set a roadmap for other states to see how to actually regulate a major market. There's no poltical will to do that.
Soludo is actually trying to do it that in Anambra state, you can see them already threatening him with one-term government. It's a Nigerian thing and Anambra and Abia state are jusr unfortunate to be so much reliant on this kind of economy

Citizens keeping their money is an Economic policy of government that grows middle class.

The problem of most government is not revenue generation but frivolous expenditures.

Mbakwe imposed a duty and levy on every Adult Citizens of Imo State and used it to build an Airport.

Government can impose a levy on businesses in Open markets to generate revenue for a project provided the Citizens buy into the vision.

LadyExcellency:


Citizens keeping their money is an Economic policy of government that grows middle class.

The problem of most government is not revenue generation but frivolous expenditures.

Mbakwe imposed a duty and levy on every Adult Citizens of Imo State and used it to build an Airport.

Government can impose a levy on businesses in Open markets to generate revenue for a project provided the Citizens buy into the vision.

Well, you have a point, let them do something with the little they have first.

socialmediaman:
You just need to learn how it’s done in other countries, not rocket science

Taxing businesses in Anambra and Abia states are easy with right government in place.

You just need to implement local tax policies and the right technologies.

Track imports and supply chains to enable government predict local sales revenue from businesses

Also, empower tax consultants to work with local businesses to ensure compliance

For example, if company A buys goods worth 500K and reports that in their tax filing so they could get a tax break, but you fail to report the revenue in your tax filing, there’s already a disparity that warrants invitation from government which could result in huge penalties or even imprisonment.

They can use it to blackmail the governor or his party when seeking re-election, mind you it's control by indigenes, same with the industries 99% of the industries are control by indigenous you have to be careful taxing them

FatherOfJesus:
The problem in Aba and onitsha is not an Anambra or Abia state problem exclusively. It's a Nigerian problem that you even see in big markets of Lagos.

But like you said, I expect these states to set a roadmap for other states to see how to actually regulate a major market. There's no poltical will to do that.
Soludo is actually trying to do it that in Anambra state, you can see them already threatening him with one-term government. It's a Nigerian thing and Anambra and Abia state are jusr unfortunate to be so much reliant on this kind of economy

They also host many indigenous industries unlike the foreign companies that litters in West and south south, mind you trade contribute more to Nigeria GDP than manufacturing sector I hope you know, the government benefit from formal sector activities while the citizens suffer only few are employed and the enjoy limited salaries, but informal commercial activities the citizens make more money and they sector engage more people unlike formal sector, that's is why when you visit cities like Onitsha, Aba and Nnewi you see endless of multi storey buildings built by this traders while factory worker is struggling to feed his/her family or manage to buy one plot of land before his retirement.

https://www.youtube.com/watch?v=JvQK6oRLGfE

You see company staffs contributing money monthly to group to be able to buy one plot but the traders one person owing 4 to 5 storey building in more than 5 different places, do the maths how much it cost to build one storey, but these guys will build 5 storey building with multiple flats under one year or latest two years

Bestmanfornow:

They can use it to blackmail the governor or his party when seeking re-election, mind you it's control by indigenes, same with the industries 99% of the industries are control by indigenous you have to be careful taxing them

Like I said, learn from other countries. They have successfully done this a long time ago. It involves a lot of meetings with stakeholders in the markets and communities and a lot of training, support, and incentives as well.

It can’t easily be implemented when a governor sits on his high chair enjoying security votes and dishing out orders and running a clueless, hidden and corrupt agenda like most of them in this part of the world

socialmediaman:
You just need to learn how it’s done in other countries, not rocket science

Taxing businesses in Anambra and Abia states are easy with right government in place.

You just need to implement local tax policies and the right technologies.

Track imports and supply chains to enable government predict local sales revenue from businesses

Also, empower tax consultants to work with local businesses to ensure compliance

For example, if company A buys goods worth 500K and reports that in their tax filing so they could get a tax break, but you fail to report the revenue in your tax filing, there’s already a disparity that warrants invitation from government which could result in huge penalties or even imprisonment.

As long as people go unpunished for tax evasion, it will remain rife (Read Eccl 8:11)

I support a reduction in company tax rates to be between 12.5-15% inclusive of the education. Prime focus should be on the tax base and not the tax rate. India discovered that any time it reduced tax rates, revenues jumped as entities were more like to comply.

Also, a low company tax rate will boost investment, especially Foreign Direct Investment and portfolio.

Let us see what Pat Utomi can achieve has it is rumoured that he will head the economic team under Tinubu

FatherOfJesus:
Anambra and Abia state governments will always have issues raising their IGR as fast as other states because their economy is driving by commerce, it's pure a commerce-based economy that has to do with People having to import products almost always to help fill the production deficit in the country. It's operated by an open market system that is very difficult to regulate and tax.
Unlike the service/production based economy you see in oil producing states and southwest. These economy are easier to regulate hence taxing them will not be a big issue.
Imagine a market like Ariaria and Unilever plant in Sango Otta or shell facility in Warri. It will be much easier to tax those facilities in Warri and Otta than taxing Ariaria market because there's a regulatory challenge for the latter. Because you are dealing with importers who move goods to retailers, you can only rely on tarrifs or taxing them for shop and warehouse spaces. Most of these tarrifs never get to government coffers. Tax leakage is a major problem with an open market commercial based economy.

Those markets actually make a lot of money but these monies remain in the hands of citizens instead of the government because it's hard to properly tax such forms of transactions. Imagine Onitsha market, it's like a major commercial centre for neighboring states like Enugu, Kogi, Benue, Delta, rivers, Akwa Ibom, Ondo and even Edo state and even beyond. It means that people in these states, especially the oil producing states will need to get the funds from oil, take those funds to Aba or onitsha to buy goods from importers to service the needs in their various states but at the end of the day, it becomes a problem for Abia state and Anambra to tax these transactions.
At the end of the day, funds will flow from other parts of the country to these states. Most of the funds will remain with the traders and importers because of the nature of their economy and then government will be left with the little it managed to collect.

In service and production based economy like in southwest and Southsouth, you know all the companies you will tax, they will file their returns and do the needful without stress. All you have to do is keep proper records and prosecute those who evade these taxes. Some of the money that would have been in the hands of individuals will go to the government.

This is why CBN included Abia and anambra alongside Rivers, Lagos and FCT as states with the largest cash flows in the country. The money is available because they are a major commercial hub for neighboring states but their state governments are unable to tax them.

Continue to deceive yourself.Petty trading does not grow an economy like industries.
In Britain,the largest number of petty traders are the Pakistanis,reason they are not as rich as the Britons.
The SW is richer because they have the highest number of middle class,lawyers,professors,doctors,engineers etc.
Igbos should not depend on almost 80% petty trading the way they are doing.It makes them need a large population,makes them go into different criminal activities than the other tribes.
They have to make a little change to their economic platform and strategy.
If Nigeria breaks this moment,Igbos will have a lot of problems economically if they continue with this trajectory.

Putinofrussia:

Continue to deceive yourself.Petty trading does not grow an economy like industries.
In Britain,the largest number of petty traders are the Pakistanis,reason they are not as rich as the Britons.
The SW is richer because they have the highest number of middle class,lawyers,professors,doctors,engineers etc.
Igbos should not depend on almost 80% petty trading the way they are doing.It makes them need a large population,makes them go into different criminal activities than the other tribes.
They have to make a little change to their economic platform and strategy.
If Nigeria breaks this moment,Igbos will have a lot of problems economically if they continue with this trajectory.

Try and stay out of intelligent conversation

Everything to u is TRIBAL war.ewu

Putinofrussia:

Continue to deceive yourself.Petty trading does not grow an economy like industries.
In Britain,the largest number of petty traders are the Pakistanis,reason they are not as rich as the Britons.
The SW is richer because they have the highest number of middle class,lawyers,professors,doctors,engineers etc.
Igbos should not depend on almost 80% petty trading the way they are doing.It makes them need a large population,makes them go into different criminal activities than the other tribes.
They have to make a little change to their economic platform and strategy.
If Nigeria breaks this moment,Igbos will have a lot of problems economically if they continue with this trajectory.

what happens in Onitsha market is not petty trading.
A single trader can import goods worth 1billion naira. Markets that serve the whole of southeast, southsouth, Benue, Kogi and even Cameroon is not a petty trade.

These markets are where you find major importers that actually supply wholesalers as long as imported goods are concern

FatherOfJesus:
what happens in Onitsha market is not petty trading.
A single trader can import goods worth 1billion naira. Markets that serve the whole of southeast and southsouth is not a petty trade.

These markets are where you find major importers that actually supply wholesalers as long as imported goods are concern

Middle Belt, even Ondo state, Abuja, far north and some neighbouring countries

Their government should hire tax expert that specialized in tax collection.
They know how to collect tax effectively.
The state should go and learn from lagos or other states.

Putinofrussia:

Continue to deceive yourself.Petty trading does not grow an economy like industries.
In Britain,the largest number of petty traders are the Pakistanis,reason they are not as rich as the Britons.
The SW is richer because they have the highest number of middle class,lawyers,professors,doctors,engineers etc.
Igbos should not depend on almost 80% petty trading the way they are doing.It makes them need a large population,makes them go into different criminal activities than the other tribes.
They have to make a little change to their economic platform and strategy.
If Nigeria breaks this moment,Igbos will have a lot of problems economically if they continue with this trajectory.

Some of you are dumb and blinded by hate trade contribute to Nigeria gdp than manufacturing, the disadvantage is the government make less in revenue while the trade go home with more than 98% of their profits, the guys are far richer than average salary earners in your region, stop deceiving yourself

juman:
Their government should hire tax expert that specialized in tax collection.
They know how to collect tax effectively.
The state should go and learn from lagos or other states.

Lagos also has this problem. Did you read the thread properly?

07kjb:


Try and stay out of intelligent conversation

Everything to u is TRIBAL war.ewu

You mentioned the SW and I gave you reason it is the way it is.
Justt stating the truth,sir.