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KW-IRS: LGs to assume revenue collection duty

By Opeyemi Daniel

The 16 Local Governments in Kwara State are to start collecting their taxes by themselves having been helped to do so by Kwara Internal Revenue Service (KW-IRS) since inception of the service two years ago. This decision was reached after the Joint Revenue Committee meeting.
It would be recalled that the Joint Revenue Committee was established through the Kwara State Revenue Administration Law of 2015 as amended; specifically section 24 of that law and it is being headed by the chairman of the state Internal Revenue Service and has as its members, the local government Chairmen in the state.
The chairman of the committee who is also the executive chairman of Kwara Internal Revenue Service (KW-IRS) Dr Muritala Awodun revealed in a press briefing after their meeting the reason for the decision, what they expect from it and even the exceptions of the taxes collections by the local governments. “At our meeting today, we resolved that the approved list on the schedule for revenue collection be reverted to.
“You know that prior to now, since 2016, KW-IRS had been engaged by the local government to collect revenue on their behalf and that has been done from inception of our operation but we resolved at the end of this meeting, that, specifically all the items on the approved list meant for the local government revenue, should be collected by the local government themselves while the KW-IRS will concentrate their activities on the collection of state revenues except for four items that still rest for the state IRS to collect on behalf of the local government.
“These items are; citizenship fee which is already automated and because the system is working perfectly without any hitch, the local governments believe that it should continue under the KW-IRS platform as the basis for collection. Tenement rate is the second one, and because the state is overhauling the land administration process, and prior to now, both land charge and tenement rate were collected by the KW-IRS and that makes the tenement rate to remain under KW-IRS so that the local government too will benefit from the improvement on it as a result of the ongoing over hauling.
“The third item is advert and signage; by law, 'advert and signage' is listed for both state and the local government to ensure that the responsibility of the joint revenue committee on harmonizing revenue and tax administration. So, we resolved that the collection of it should continue with the KW-IRS for both state and the local government and it will be apportioned appropriately.
“While the fourth and the last is Telecom mast, local government are entitled to collect revenue on locations where telecom mast are sited and the state also has right to tax collection on the mounted mast itself and because of this, they will continue to assist the local government in collecting tenement rate due on telecom mast.
“Apart from these four, all other items on the schedule list will be collected henceforth by the local government themselves. However we have left a target that any local government that still want to continue to engage the service of KW-IRS to collect their revenue for them should approach the service individually for that purpose.
“This is to make it very clear that the process of revenue collection is changing a bit in the state because the local government officials will henceforth be seen collecting the other revenue that hitherto been collected on their behalf by the KW-IRS”; Awodun divulged.
Also, the Chairman, of Association of Local Government of Nigeria, (ALGON) Kwara State chapter, Joshua Olatunji Omokanye on behalf of all the chairmen, said they have all agreed based on the law and there is no discontentment whatsoever, assuring that there will be no problem now or in the foreseable future.
He added that if there is any area they deemed fit to partner with the service as the Chairman himself has said, in promoting the revenue drive of the local governments, they will gladly do, noting that their meeting was thorough and the resolution is in the interest of all.

The reason for the service collecting it on their behalf in the first instance according to him was to avoid double taxation but now that they (the local government) have been a bit grounded in the tax processes, they have to assume the responsibilities and move on.
KW-IRS: LGs to assume revenue collection duty Reviewed by Unknown on April 13, 2018 Rating: 5

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