MEASURES TO SHORE UP THE IGR: WHAT ABIA IS DOING DIFFERENTLY.

By Mr. Obinna Oriaku
Overbearing are the burdens of States on the shoulders of the federal government that it became more worrisome in the phase of the economic recession. At a point the price of the crude oil went down to its very lowest ebb ever to about 34 dollar per barrel, affecting the benchmark of oil producing nations, including Nigeria.
This gave rise to the need for different governments to evolve options to increase their Internally Generated Revenues (IGRs). The search for alternative and complementary sources of revenues is likely to intensify even in the days ahead. This is more so for Abia State, given that it is a landlocked State and the revenue sources are limited.
There are yet challenges with resource mobilization in the State and these challenges are likely to deepen which may lead to a broader range of socio-economic difficulties should nothing be done about the conditions of IGR in the State. IGR in the State have hitherto, been very flexible and only serves the need for the moment rather than providing support for lasting solutions.
The deficiencies in IGR generation and management in the State affects most other aspects of public finance. Poor accounting and auditing processes ultimately limits the capacity of the government to retain what it has generated.
Besides, fluctuating political and economic environments reflects on IGR outcomes because institutions and structures that drive IGR collection and remittance are unstable, weak or altogether and at some point non-existent. Thus, the government adopted the under listed reforms for IGR improvement, and have continued to pay attention to other aspects of public finance management that make a physical impact on their capacity, not only to generate revenue but also utilize same for public good.
The Abia State government while phasing out the use of touts (Agberos), for the collation of its flying revenues, the government made an introduction of cutting-edge technology that has simplified revenue collection and tax administration through:
(a) elimination of sources of revenue leakages.
(b) creation and improvement of tax databases.
(c) Generation of quarterly reports showing revenue distribution.
There is an ongoing institutionalization of a far-reaching tax reforms with formulation of IGR strategies and action plans that brings about improvements in tax collection. The government of Abia has set up a better functioning tax institution that has opened up opportunities for non-direct appropriation revenue and created monitoring capacities for revenue staff so as to regularly visit formal businesses and informal sector organizations to identify potential tax payers, explain the tax payment process and check for payment certificates.
There is also improvement of tax collection processes so as to avoid double taxation, better engagement of the tax payer through sensitization and enlightenment programmes. With the cooperation among the people as an upshot of the exercises, revenues not enforced and collected has been identified.
The government, having consolidated the tax systems, streamlined the tax account that these monies are now being remitted through a central account; Treasury Single Account (TSA). In this regard, PoS terminals at tax offices linked to IGR account was introduced as a new website to support online tax payment was created too.
The creation of Traffic and Indiscipline Management Agency of Abia State (TIMAAS), Abia State Signage and Advertisement Agency, (ABSAA) which are the brain child of this government has not only served the purposes of shoring up the revenue of the State but has helped in putting off from the street, a myriad army of unemployed youths in Abia State into the employment basket of the State thereby scaling up our core values.
International Public Sector Accounting Standard (IPSAS) is been implemented in the Abia State 2017 Budget so as to ensure the proposed and actual expenditures are actually carried out for the respective activities. This would ensure that Keynesian multiplier indices such as power, electricity and education will receive their due attention thereby increasing revenue in other sectors of the economy in conformity of the fiscal budget and economic blueprint of Governor Ikpeazu.
This and the completion of the ‘one-stop-shop”, has in no small means helped in the improvement in the business environment to attract private capital investments that will positively influence IGR.
Currently, there is an ongoing review and reform of the tax laws in the State to conform with current realities: including but not limited to publish tax list, rates of approved and authorized taxes, and levies collectible by the different levels of government – state and local governments.
The skepticisms surrounding the payment of levies and taxes are being shrugged off gradually with lots of infrastructural revolution being witness along the width and breath of Abia State as expectations are high that Abians will reciprocate it by paying the legal and government approved taxes.
More aptly put, government of Abia State has, in line with the anti-corruption stance of President Mohammadu Buhari blocked some leakages in the system as well stamped out most of the corrupt practices which had hitherto bedeviled the growth of the State in not being able to collate our IGR.
Mr. Obinna Oriaku ia an Economic and Business Analyst