Business Day (Nigeria)

How Rivers may have cracked the informal sector tax drive formula

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said the committee truly did huge work and that it was a big sacrifice by representa­tives of the private sector operators to help in the tax collection task of Rivers State. “We wanted the true view of the taxpayers in the state. We will look at it first before deciding on adoption of the report, but we can’t throw away the entire report. That would mean we should not have even set up the committee in the first place.”

Many described the present RIRS as a listening agency. North said: “I regard this report as an olive branch from the Government and I expect taxpayers to embrace it. Let us join hands to eliminate touting. Now, the tax atmosphere is expected to be clear. We could have fixed the taxes and rolled out the drive but we chose to consult and engage. Kick-off will start with serving demand notices in line with this resolution. We will release the taxes. We will serve what we call ‘presumptiv­e amounts’ because there have been no individual assessment­s. We plan to release leaflets and handbills. People should also visit our website.

“We insist, do not pay cash. Any person demanding cash is fake. We will not push many people into the tax space to demand for tax. Else, touts capitalize on it. The activities would be streamline­d and calm. We may work with the unions where necessary. There would be no handwritte­n receipts. The IT payment platforms would generate receipts as you pay.”

Norteh took time off to explain further what he meant in the issue of churches and tax. He made it clear thus: “Churches as registered nonprofits will not pay tax but when they engage in profit-making activities, they will have to pay. If church members go to work and earn income, they will pay tax.”

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