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Delta State Government moves to end double taxation

Gabriel Elozino by Gabriel Elozino
October 28, 2024
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In a decisive move to tackle double taxation and unauthorized tax collection, the Delta State Government has announced new measures aimed at streamlining tax processes and improving accountability across the state.

Speaking in Asaba, as a guest at the Delta NUJ’s Journalist Hangout tagged “Parley to Party”, Hon. Collins Iwebunor, Executive Director, ICT and Corporate Affairs at the Delta State Internal Revenue Services, outlined the government’s commitment to halting unauthorized tax collection activities, which have led to double taxation for many residents.

Hon. Iwebunor, representing the Board Chairman, Hon. Solomon Igrakpata, acknowledged the challenges caused by local council officials collecting state taxes outside their jurisdiction, often resulting in multiple levies for businesses and individuals. This unregulated collection has sparked concern among taxpayers, many of whom are unaware of which taxes they are legally obligated to pay.

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He pointed out that to address the issue, the DSIRS will host a conference for local government chairpersons to clarify and define which taxes each authority is permitted to collect, with an aim to prevent further cases of double taxation by ensuring clear boundaries on tax responsibilities.

“Double taxation has been a significant concern due to overlapping tax collections, often because of a lack of understanding among tax collectors. We are committed to creating a more transparent and efficient tax system that minimizes confusion and maximizes revenue for public projects and services,” he stated.

Read also: Gas Explosion: Ebonyi First Lady donates 2m to support victims’ treatment

The DSIRS has also implemented a range of strategic reforms to boost Internally Generated Revenue (IGR) while ensuring taxpayer fairness. Key measures include the automation of tax collection processes in the informal sector, the formation of an Intelligence and Compliance Unit to identify unregistered taxpayers, and the deployment of external solicitors to expedite tax litigation. Additionally, the government has introduced the Consolidated MDAs Billing System to eliminate revenue leakages from ministries, departments, and agencies (MDAs).

Delta State Government moves to end double taxationHon. Iwebunor emphasized the importance of voluntary tax compliance, adding that the DSIRS continues to educate and inform taxpayers through media campaigns, roadshows, and public sensitization efforts.

With these steps, the Delta State Government aims to create a tax-friendly environment that encourages compliance, reduces the burden on residents, and ensures that taxpayer contributions support the state’s development under Governor Sheriff F.O. Oborevwori’s M.O.R.E. Agenda for Delta State.

Similarly, Delta State Internal Revenue Service (DSIRS) has reported a strong performance in tax collection for 2024, generating a cumulative Internally Generated Revenue (IGR) of N111,730,221,409.37 from January to September 2024. This figure shows a substantial increase over the N83,337,575,425.44 collected during the same period in 2023, reflecting a positive variance of N28,392,645,983.93 or a 134.07% performance.

With this achievement, DSIRS has already surpassed the 2024 annual revenue target of N110,304,108,619.00, reaching 101.29% of the goal by September, positioning the state for further fiscal growth in the remaining months of the year.

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