How Illegal Taxes, Road Blocks Stifle Benue Economy

Recently the executive chairman Benue State Internal Revenue Services (BIRS),Terzungwe Atser fingered some politicians, traditional rulers, local government officials as well as highly placed persons  in the society to be involved in illegal collection of taxes across the state.

Shortly on assumption of office, Atser   raised an alarm on the issue of multiple taxation, that has affected the revenue base of the state. He observed that funds that end up in the pockets of private individuals was far higher than  the one  remitted into government coffers. It was discovered that these persons have engaged in printing fake receipts, which were given to their ‘boys’ who set up illegal road blocks and collect taxes that do not exist.Their actions have not only served to deprive the state of the much needed revenue, but also posed a threat to motorists, transporters as well as other road users in Benue. Startling revelations also emerged that these operators had fake letters from  highly placed persons authorizing them to operate, just as some of these letters Daily Independent gathered, were allegedly signed by top security officers, government officials, political party stalwarts and  the BIRS chairman. But, i some  stakeholders  who also fingered  BIRS staff as  culpable in the crime, implored the management of the agency  to cleanse the Aegean’s table  because some of the receipts being used were allegedly issued from the office. The operators of the illegal road blocks, not only beat up transporters who resist them but maim others and even cause accidents in the course of their illegal operations. The development has also posed a threat to the activities of both farmers in the state as well as traders that come to the various markets from other locations in the country to purchase produce. On the home front, the activities of operators of these illegal checkpoints have affected the sale of farmers produce in the markets, while on the other hand it has brought about drastic reduction in internally generated revenue. The development has also brought about a decline in traders’ patronage from other states of the country who patronize these markets that bring about the much needed revenue.It was also learnt that due to multiple taxation, traders evade genuine taxes in order to pay illegal operators on the roads so as to break even, thus causing government to lose  huge revenue. Besides  the  activities of these illegal operators have posed a threat to road users in the state; in some cases with the collaboration of security operatives in the state. The illegal operators of these road blocks in some cases take laws into their hands and cause damage to vehicles, deflate tyres of transporters, in the bid to coerce them into paying illegal taxes. They sometimes cause accidents on the road by throwing logs of wood in the path of vehicles that do not stop for them. Matters came to a head when buyers refused to make purchases due to multiple taxation and in protest, women in Gando market, Gboko local government area  poured their tomatoes on the highway, obstructing traffic in the process. The development prompted Atser and his team made up of Titus Ningir, Head Enforcement; Unongo Emmanuel Atim, Higher Executive Officer Revenue; Mariam Dawa, Principal Executive Officer 1 on Revenue; Moses Ngutor Igbawua, Director Debt Management and Enforcement and Dennis Mernyi, the Special Assistant on Media to Atser to take inventory of the illegal road blocks in  the state. He also  embarked on a tour  where he held series of meetings with traditional rulers in the state, aimed at checking the activities of the operators. During the meetings, it was gathered that the state has the highest number of illegal checkpoints, where revenue is collected illegally by operators of these illegal checkpoints. Atser frowned at the actions of the illegal operators and threatened to evoke the full wrath of the law against criminals who  refused to heed his warnings to get off the roads. He threatened to arrest traditional ruler in whose domain these illegal operations were being carried out, adding that in the bid to put a stop to the illegality, traditional rulers or the owners of households around where these illegality were perpetrated would be held responsible. Besides, the activities of the illegal tax operators in the state has  eaten deep into the  fabric of the state’s economy, with major businesses threatening to pull out of Benue if the  development  was not  nipped in the bud It was gathered that four major betting companies have left the state as a result of the activities of the illegal operators, while  Nigeria Brewery Limited (NBL),  may soon follow suit. The BIRS  has commenced a clampdown on criminal elements on account of failure of its warnings to perpetrators of the illegal operation to change their acts. The clampdown was a last resort after series of warnings handed down to the offenders to desist from setting up illegal road blocks to collect tolls. Atser who was irked by the activities of the politicians that have put the boys on the roads, who said they were placed on the roads as part of ‘settlement’ by government, adding that government has not asked any politician to set up illegal road blocks. While he explained that BIRS was the only legal established body set up by government to collect taxes, he stated that BIRS does not set up road blocks, with the aim of collecting taxes.

Source: Independent

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