Ganduje and the new taxation policy

In one of Freedom Radio’s popular panelist programs Allah Daya Gari Bamban anchored by ace broadcaster, Usman Usman, participants, who share their experiences of life in countries they visited, envy development in other countries of the world and express their frustrations over the state of affairs in Nigeria, particularly when it comes to welfare of […]

Ganduje and the new taxation policy

In one of Freedom Radio’s popular panelist programs Allah Daya Gari Bamban anchored by ace broadcaster, Usman Usman, participants, who share their experiences of life in countries they visited, envy development in other countries of the world and express their frustrations over the state of affairs in Nigeria, particularly when it comes to welfare of citizens and provision of social amenities.
Most of those who feature in the one hour programme went to such countries to pursue businesses, studies or religious activities and in the process had come to terms with the reality of what obtains in such societies in terms of economic, political, social and physical development of the host countries.
What they however overlook or fail to emphasize during such discussions is that tax, which forms the bulk of revenue to all levels of government that citizens and even corporate Nigeria are reluctant to pay, remains the major source of development of these countries. It is from taxation, which has been made a fully entrenched policy and remains the driving force of their development they administer their nations with all sense of responsibility.
As we have been hearing from the guests who feature in Allah daya gari bamban, citizens of such countries have a great deal of patriotism, while their governments are responsible for their people and respond to their demands at all times and have effective rapid response strategies to emergencies of any form, provide sound medical care, affordable house mortgage, protection of life and property and other welfare packages for the citizens.   
Many of us fail or deliberately refused to understand that most of these countries we envy do not enjoy our abundant natural resources and fertile land but rely solely on proceeds from taxation to take care of the welfare of their countrymen and women as well as the overall development of their nations.
Though one can understand that corruption has eaten deep into the fabrics of the nation’s development in Nigeria in the recent past which may have influence citizen’s willingness to discharge this civic responsibility, even the refusal to pay tax is another form of corruption. And above all, it doesn’t start and end with public officers elected or appointed. Take a look at how you beat check point, how you defraud your fellow countrymen and all that.  
The present administration in the state has observed with concern that dwindling level of Internally Generated Revenue and the slim nature of the state’s treasury which will affect adequate development and even distribution of democratic dividends, calls for the understanding of the people of the state through prompt payment of tax.
Governor Abdullahi Umar Ganduje told visiting executive members of the state council of the Nigeria Labour Congress NLC at the Government House recently that: “We will soon start collecting tax from banks, educational institutions, private hospitals and other big companies in the state. We must tax the rich in order to improve the lives of the poor. This is why the government recently reformed the state revenue board so that we can generate more funds.”
A proper and effective tax policy always tasks the rich, because even in developed economies where almost 40 per cent of annual or monthly revenue generation from big earners’ income goes to the government coffers as taxation. They may be company owners, business mogul, top entrepreneurs, entertainers, sportsmen and women, the working class etc. 
While some people in Kano see the governor’s idea as step taken toward entrenching a sound tax policy and creating a reliable financial stronghold for tax payers money to be used judiciously, other misinformed minds, especially those who have access to private radio stations, out of mere sentiments, and often time for a token, took it on themselves to engage in media campaign to discredit the government on its good intention.
Not minding the fact that the short fall in crude oil sale began to send a stronger message of the reality of financial downturn to state governors in the country, such people branded by Governor Ganduje as Masu baki da kunu (politicians fond of making unguarded statements) are hell bent on creating the impression that the state government is determined to “unnecessarily” tax the people, mostly the masses.
However, having sensed such dangers which the crash in oil price poses to the economy of the country, the governor inaugurated a financial think tank to ensure significant increase in internal revenue generation considering the fact that when they took over the mantle of leadership in May 29, many governors found activities in their respective states virtually grounded with lean federal allocations, even as some state governments have had to scrap at the very bottom of their purse to pay salaries, do capital projects and run governance.
Based on what is obtained in the 2016 budget, the people of Kano are to contribute in accruing almost half of the budget appropriation. In fact, the budgetary provision of over N274 billion in the budget is to be realized through sustained monthly federal grant and internal revenue generation which is currently in short supply.
And more importantly, Governor Ganduje reiterated vividly that the direction of his administration would be predicated on continuation, consolidation, fine tuning of on-going critical infrastructural projects embarked upon by the previous administrations and to further initiate more people oriented policies and programmes for the overall development of the state, which by now, the people of the state testify to his commitments in that regard.
The state government proposed to spend a sum of N64.39billion for providing conducive and reliable infrastructure in the state. These include among others, completion of ongoing projects, construction and rehabilitation of various roads and bridges across the state, conversion of Plaza Cinema to multi-storey car park, an over pass to link Kantin Kwari market, general rehabilitation of the market and provision of new stalls and modern collapsible stalls, minor and major works, constituency projects, renovation of Audu Bako Secretariat, establishment of ultra-modern integrated skills acquisition center in the state as well completion of Independent Power Plant (IPP) and power evacuation at Tiga & Challawa Gorge-dams.
This informs the state government decision to employ the services of nine tax consultants to boost its monthly Internally Generated Revenue (IGR) under a strategic plan to reduce dependence on federal government’s monthly allocation to meet financial obligations.  It is up to us therefore to lend this government our support to ensure the success of this policy aimed at ensuring that things are turn around. We believe that there has been an effective development not only in western countries but also in our sister African countries which they achieved through an articulate tax system.
Moreover, Governor Ganduje proved his worth by defining and dictating how he wants history to remember him, part of which is entrenchment of an effective tax policy for the state. In fact, his decision to reduce the size of his government for cost effectiveness and better efficiency, slashing by half the salaries of all political appointees as well as exemplification of President Muhammadu Buhari’s anti-corruption crusade as a classical example of his efforts in this direction.

Musa wrote this piece from Kofar Mata Quarters, Kano.