''... Revenue is to government, what blood is to the human body. Without which the human body cannot function... '' - - Mrs Mimi Adzape-Orubibi.
The maiden meeting of the BIRS and the leadership of the aforementioned Association and Market Union was held today.
The chairman of the Board of Internal Revenue Service, Mrs Mimi Adzape-Orubibi, warmly welcomed the officials and representative of the unions to the town hall meeting.
She informed them that the ate the first group of people she would be meeting with since she assumed office as Chairman of the Board.
According to her, the meeting became imperative in view of the dwindling Revenues from the Federation Account which has affected the fortunes of Benue State towards the provision of social amenities and infrastructure to citizens of the state. She explained to continue funding infrastructure, it is important that, Benue State like other states in the country must improve her internally generated Revenue to finance government projects.
Mrs Mimi Adzape-Orubibi announced the introduction of the Presumptive Tax Regime in the informer sector so that those in it can make their little contributions in the form of paying the Personal Income Tax.
What then is Presumptive Tax?
The BIRS Chairman explained that, Where the income of the Taxpayers cannot be ascertained or records are not kept, section 36(6) Of Personal Income Tax (Amended) Act 2011, allows for such income to be assessed using the Presumptive tax regime as agreed by each States benchmark depending on their Revenue potentials.
Taxes are paid because it is a civic responsibility and it enables government to provide services such as Education, Healthcare, Environment protection, Infrastructure, Security etc. Taxes are paid at the beginning of the Year by 1st January and finish by 31st December of the Year and taxes are paid in ones place of residence and where one earns his or her income.
Mrs Mimi Adzape - Orubibi, stated that taxes will be collected daily using Point of sales (POS) devices.
Speaking further on the issue of POS, the director of collection and accounting Mr Victor Beke explained that the machine is an electronic device that will be used to collect taxes both in the market and in the offices. Every thing paid by any tax payer any where will be Registered in the server of the Board.
She reminded the leadership of the Associations that section 51,52 and 53 of the state internal Revenue Administration Law 2015 spells out imprisonment for 12 months for failing to pay tax.
On the issue of Tax Identification Number (TIN) Mr Utoo Albert explained that it is an electronic and unique way of identifying tax payers. It enables government to have a reliable and centralised data of tax payers for easy Tax Administration. Getting this number is number is free of charge. He therefore encouraged all taxable adults to get their TIN numbers.
Members of the Associations asked several questions bothering on their concerns about tax administration to multiple taxation etc.
It was indeed a fulfilling town all meeting as both the representatives of the association and the BIRS agreed to cooperate for easy Tax Administration in the state.
Speaking with a cross section of attendees at the meeting shortly after the town hall meeting, most of them hailed the wonderful initiative of the BIRS chairman and expressed their confidence in her ability to change the face of Revenue generation in the state.
Below is the address of the BIRS chairman
WELCOME ADDRESS BY THE EXECUTIVE CHAIRMAN BENUE STATE INTERNAL REVENUE SERVICE (BIRS) MRS. MIMI ADZAPE-ORUBIBI, ACTI. ON TIER MAIDEN MEETING WITH EXECUTIVES OF TRADERS ASSOCIATION AND MARKET UNIONS IN BENUE STATE. ON THE 30TH OCTOBER, 2015 FOR THE TAKE OFF OF PRESUMPTIVE TAX REGIME IN BENUE STATE.
On behalf of Management and Staff of Benue State Internal Revenue Service (BIRS) 1 am delighted to heartily welcome you to this maiden meeting of BIRS with Executives of Traders Association and Market Onion's Officials of Nigeria Benue State Chapter. It has become imperative that we meet with you due to recent developments in Nigeria and Benue State in particular as regards dwindling revenues from the Federation Account. This has largely affected the fortunes of Benue State towards the provision of social amenities and infrastructure to citizens of the state. Government is no longer finding it easy on how to fund these essential services. For Government to continue funding infrastructure it is important that Benue State like other states in Nigeria looks inwards. That is Internally Generated Revenue (IGR) to finance Government Projects.
It is on this note that BIRS is bringing the Presumptive Tax Regime in the informal sector so that those in it can make their little contributions in the form of paying their Personal Income Tax so that government can continue to provide the needed infrastructure for traders, artisans and small businesses to thrive. Presumptive tax is aimed at generating revenue from the informal sector for Government. Revenue is to government what blood is to the human body. Without blood, the human body cannot function, so is revenue to government for the provisions of healthcare, education, roads, security e.t.c
What is Presumptive Tax?
Where the income of the taxpayer cannot be ascertained or records are not kept, Section 36(6) of Personal Income Tax (Amended) Act 2011 allows for such income to be assessed using the presumptive tax regime as agreed by each state's benchmark depending on their revenue potentials.
1. Why Pay?
More often than now, people ask why do we have to pay taxes to Government'? The anonym,' is nit far-fetched :
ii. It is your civic responsibility/duty to do so.
ii. Government uses taxpayer's money to pay for services we all need such Education, Healthcare, Environmental Protection, infrastructure, security etc.
2 Who Pays ?
Everyone that earns/receives any income must pay taxes. This includes income from Traders, small business, dividends etc. Sections 1,2 and 3 of Personal Income Tax (Amended) Act 2011 refers.
It is for this reason that the informal sector is now brought in to the tax net to ensure that you are only paying the portion you truly owe.
3. When to pay?
You pay Personal Income Tax at the beginning of the year by 1st January and finish by 31st December. It is in the light of this that government is rubbing minds with you to see how best this can be done conveniently.
4. Where to Pay?
You pad tax in your place of residence and where you are earning your income. Income earned in the Makurdi modern market will be taxed in Makurdi modern market.
5. What if You fail to pay/obstruct/false declaration of due taxes, levies, rates or other revenues?
If you don't pay the full amount of your tax, levy, rate or other revenues due to the State Government or Local Government Area (LGA) you are liable upon conviction to 1. A fine of 1% of the total amount of revenue which was due and payable for each day of default and;
ii. Imprisonment for twelve (12) months Sections 51, 51 and 53 of State Internal Revenue Administration Law 2015 refers.
In trying to bring the Informal Sector into the tax net, MRS has also shown taxpayers what they are to pay to each tier of government as outlined in the Schedule to the Taxes and Levies (Approved List for Collection) Act (Amendment) Order, 2015. This will to a large extent help you know what you are to pay to the State Government and Local Government Councils.
Finally it is my candid opinion that what BIRS is proposing is going to be simple and easy to administer. We arc looking at collecting taxes daily as you make payments small and affordable using Point of Sales (POS) devices, instead of asking you to make payments once. This form of Presumptive Tax is allowed under the auspices of Section 36(6) of Personal Income Tax (Amended) Act 2011. It has been done in many states of the Federation for example Lagos, Edo States and outside the shores of Nigeria like Ghana, Zimbabwe etc.
Please be counted amongst those who really stood by her State in times of her difficulties and helped her pull through. Benue is ours, collectively we shall salvage her. Thank you for listening.
Mrs. Mimi Adzape-Orubibi ACTI Executive Chairman.
The meeting was attended by all management team of BIRS and executives of the Associations, members of the press and social media activist including Ati Ati Kenneth Kengkeng
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