The Imo State Internal Revenue Service (IIRS) and local government, have resolved to have a central collection of internally generated revenue emanating from both sources according to the provision of the state revenue business law.
This is contained in a release issued by Mrs Omeoga Ugomma, Public Relations Officer of Internal Revenue Service (IIRS) and availed Daily Nigerian Horn.
According to the release, this resolve came up at a meeting between the chairman of the state Internal Revenue Service, Nze Charles Onwunali, directors of IIRS and the local government Chairmen of the 27 local government Areas of the state, at IIRS premises in Owerri.
The agreement which was based on sharing formula of 45 and 55 percentage rates for the state and local government respectively would now mandate the state to be collecting the revenue and remit to the local government areas the amount accruing to them.
“This development became necessary as a result of cases of unathorizeed and indiscriminate collection of internally generated revenue by questionable characters in the past who use such revenue for individual or group satisfaction and benefits”.
Addressing the meeting, Nze Onwunali reiterated the need for a central collection with the view to saving cost, curbing leakages,, ensuring profitability and accountability, in addition to warding off touts from the streets.
Onwunali expressed his wish for the state and local government to operate on the same page in line with the best practices obtainable in other states of the federation, such as Anambra, Enugu, and Lagos, as good examples where the Treasury Single Account (TSA) is being used.
Speaking, the Chief Executive Officer of Byteworks Technology Solution Limited and Partiner Implementation of Automation of taxes in Imo State, Mr. Eze Osuagwu said that in the face of dwindling Federal allocation occasioned by decline in oil revenue, internally generated revenue is the best solution for any state to remain afloat economically.
He revealed that the western world was set to devise electronic operated cars which will not require the use of petroleum oil to drive them, thereby rendering the crude oil valueless and called for all arms of government to embrace modern revenue system called “automatic settlement system”.
Earlier, the chairman of the interim Management Committee (IMC) of Owerri Municipal Council, Mr. Ebere Chukwuemeka and Owerri West, Mr Innocent Ekenma respectively supported the central collection system and observed that it would enable them to stop leakages of Internal Revenues and regretted that this solution came late, pointing out that if it had come up earlier these leakages would have been nipped in the bud.
Recalled that in the past, the state IGR has been collected haphazardly with the result that many who did that ended the money in individual coffers rather than that of government.