Okezie Ikpeazu Governor of Abia State
Revenue leakage: Abia bans ‘tax farming’
[From BONIFACE OKORO, Umuahia]
As part of the measures to plug revenues leakages, Abia Government has banned “tax farming.”
Tax farming is a system whereby government revenue windows are either sold out to individuals or corporate bodies or handed over to consultants to manage.
The ban on tax farming was announced by Secretary to the State Government, Barr. Chris Ezem, in a statement he issued in Umuahia, Thursday.
“A total ban has been placed on “tax farming,” selling off revenues to consultants either at the Local Government Areas or Ministries, Departments and Agencies (MDAs) levels. Such contracts will not be honoured henceforth,” Ezem warned.
The SSG explained that the new measure was in accord with the Abia State Tax Codification Law, 2020 and consistent with the just signed directive of Abia State on Internally Generated Revenue (IGR), adding that all LGA’s, MDAs Consultants and Revenue Agents who contravene the ban should be arrested and prosecuted.
The statement reads: “In line with the Abia State Tax Codification Law, 2020 and consistent with the just signed directive of Abia State on IGR, Government wishes to announce that henceforth:
“A total ban has been placed on “tax farming” selling off revenues to consultants either at the LGA or MDA levels. Such contracts will not be honoured henceforth;
“All revenues must be paid into Government Revenue Accounts even where consultants or 3rd parties are involved, before due settlements can be undertaken;
“All LGA’s, MDAs Consultants and Revenue Agents are warned that any contravention of this law/policy shall lead to arrest and prosecution;
“All LGA bye-laws (where available) must align with the Abia State Tax Codification and Consolidation Law 2020 as the current law supersedes all previous laws or engagements.
“Any Agent who has claims prior to this time should write to the Abia State IGR Council showing evidence of such claims in other for the claim to be settled, as the new law also overrides all previous arrangements;
“All IGR collection and enforcement activities must be technology driven, tied to payer’s ABSSIN in line with the State Government ABSSIN policy, and authorized by ABiRS.
“Every revenue collected in Abia State must form part of the State’s IGR reports recognized by the Federal Government and World Bank. Any revenue not reported shall be deemed as diversion.
“All LGAs/MDAs or their consultants are hereby mandated to comply with the above policy or be held liable.”
