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Soludo Implements Disruptive Change in Anambra
Anambra State governor, Prof. Chukwuma Soludo, promised disruptive change upon assumption of office, part of which is a new tax regime recently introduced, reports David-Chyddy Eleke.
In September, 2022, commercial activities were disrupted for two days, after commercial tricycle and mini bus operators staged a two- day protest over what they called the imposition of harsh taxes on them.
For two days, commercial activities were almost crippled, especially for those who depended on public transport to move to their places of business.
The Soludo-led government had announced the new taxes for commercial motorists, including tricycles and mini busses, which have almost become the major form of intracity transport.
While tricycle operators would pay N15,000 monthly, mini bus operators are to pay N18,000.
The operators had protested that despite the amount, there were still being extorted by touts in various parks, who Soludo had earlier proscribed.
The matter seemed to have however been settled by the explanation of the state government to the operators that no Kobo was expected from them to touts as all monies will be paid electronically to the state government. The state deputy governor, Dr Onyekachi Ibezim, who spoke to the striking operators said the new tax regime was fair, compared to the over N1,000 paid daily to touts who accounted to no one.
He urged them to remain law abiding, and the matter seemed settled as activities have been going on.
Just as the uproar generated by the new taxes on tricycle and mini bus operators was dying down, the state government has released yet another bombshell on a new tax regime for refuse disposable.
The Managing Director of Anambra State Waste Management Agency (ASWAMA), Mike Ozoemena, while featuring on a radio program, “Anambra Tax Matters” made the disclosure.
The new tax regime for disposing of refuse, which became effective on 1st October 2022 was a long list of amounts for varying kinds of residential, commercial buildings, companies and many others.
Ozoemena used the opportunity availed by the program to give reasons for the new rate by the government and said with the new rate, government will have enough money to clear every street in Anambra of refuse.
Some of the rates which were calculated annually included: “For residential buildings in the rural, the rate for a duplex is N12,000, semi-urban N18, 000 and N24, 000 for the urban. Detached bungalows in rural areas; N6,000, N9000 is for the semi-urban and N12, 000 for the urban. Flat (2-3 bedrooms) will pay N3, 600 for rural, N5, 400 for semi-urban and N7, 200 for urban. 1-bedroom in the rural is N2,400, semi-urban N3,600 and N4, 800 for urban. 1-room in rural areas will pay N1, 200, N1,800 for semi-urban and N2,400 for urban.”
Other rates include: “Central Bank in Rural LGAs, the rate is N600,000, semi-urban is N900,000 while urban is N1, 200,000. Commercial banks; N240,000 for rural, N360,000 for semi-urban, N480,000 for the urban. Micro-Finance Banks will pay N60, 000 for rural, N90, 000 for semi-urban, N120, 000 for the urban, while Bureau de change will pay annual fee of N60,000 for rural, N90, 000 for semi-urban, N120,000 for urban. Insurance companies and others will pay N60,000 for rural, N90,000 for semi-urban, N120, 000 for urban.”
For hotels, he said: “Going forward, hotels with 200 rooms and above will pay N480,000 for rural, N720, 000 for semi-urban, N960, 000 for urban. Hotels with 100-199 rooms will pay N300,000 for rural, N450, 000 for semi-urban and N600, 000 for urban. Those with 50-99 rooms will pay N240, 000 for rural, N360, 000 for semi-urban and N480, 000 for urban. Hotels with 40-49 rooms will pay N180, 000 for rural, N270, 000 for semi-urban and N360, 000 for urban, yearly, while hotels with 30-39 rooms will pay N160, 000 for rural, N240, 000 for semi-urban and N320, 000 for urban LGAs. Others with 20-29 rooms will pay N144,000 for rural, N216 for semi-urban and N288 for urban. Those with 10-19 rooms will pay N120, 000 for rural, N180, 000 for semi-urban and N240,000 for urban. Hotels with 1-9 rooms will pay N60, 000 for rural, N90, 000 for semi-urban and N120,000 for urban while Video rental stores will pay N3, 600 for rural, N5, 400 for semi-urban and N7, 200 for urban.”
The managing director continued with a long list of what other categories of buildings, companies and establishments will pay.
He explained that more waste collection trucks will be procured and the trucks fueled for the work, noting that waste bins will also be purchased and placed at strategic locations across the state for effective waste collection and management.
According to him: “The new rate is a little increase on the amount households were paying the State government, as the new rate is classified according to local governments which could be Rural, Semi-Urban and Urban.”
The categorization of the local governments were done as follows; Awka South, Onitsha North, Onitsha South, Aguata, Nnewi North, Idemili North and Ogbaru were grouped as urban local government areas, Whe semi-urban local governments are; Njikoka, Idemili-South, Ihiala, Awka iNorth, Oyi, Orumba North, Orumba South, Anaocha, Nnewi South, Dunukofia, and Anambra East, while Rural local governments are; Ayamelum, Anambra West and Ekwusigo.
This move has, however, not gone down well with most residents of the state. While some said the prices are too high, others insisted that government was only good at enumerating houses for collection of levies, but their refuse collection trucks will never visit such areas.
An Awka resident, Mrs Blessing Eze, who complained about the new tax regime said: “Apart from what we are seeing today (taxes), we still believe that Soludo is the best man for the job of moving Anambra forward. But one thing we do not like is that we need to see what you are doing before we can start talking about payment of taxes to support the good work. Since Soludo came in as governor, the roads are still very bad, refuse still litter everywhere in this Awka. He should have used government money to show us example of what he can do, before he begins to persuade us to pay to support the good work he is doing.”
Another respondent, Mr Titus Sunday, said his worry was that he has heard announcements on radio congratulating Soludo for the new decision to go house to house to collect refuse, but claimed he has not seen anything like that in his area. “I live at Amawbia, close to the Hausa quarters. Once they start collecting money now, we will be among those they will come and task to pay, even as far as our place is, but now I heard that they now go from house to house to collect refuse, so why have they not come to our area? Do we need to pay, for our money to be used to service people living in the main town?” Sunday queried.
Away from that, Anambra State government seems to have made solid arrangements to ensure that every available money meant as taxes are raked into government coffers. Recently, the state government unveiled the Anambra State Joint Enforcement Team – ANJET. While government has introduced direct e-payment model, the creation of ANJET, an enforcement outfit, was to ensure payment of all levies. The group is charged with the responsibilities of supervising, monitoring and enforcing compliance, to the payment of taxes in the state.
To underscore the importance the governor placed on compliance with the tax payment, he chose Air Vice Marshall Ben Chiobi (rtd), his Special Adviser on Security Matters, as the State coordinator of ANJET.
This responsibility on the AVM demands him to ensure that the state fully enjoys tax proceeds from the huge commercial activities that go on in the state by ensuring that all lapses or leakages of the IGR windows are completely blocked and evaders of taxes as well as illegal tax collectors in the state be made to face the wrath of the law through mobile court that has the responsibility of trying tax evaders, illegal revenue collectors and contraveners of the state’s tax laws.
Already, about 26 revenue touts who were arrested in Onitsha and other places were last week tried by a special court.
While residents of the state have complained about the harsh tax regime, the state government has assured that soon, they will see the positive effect of their money in the state.