The Revenue Mobilisation Allocation and Fisical Commission (RMAFC) yesterday said tax collection at the local government level is very discouraging, calling on the Plateau State government to find ways of reducing overreliance on the federation account.
The RMAFC Zonal Coordinator for North-East, Sunday Damla, who spoke during a two day workshop on tax administration and harmonisation for stakeholders in Plateau State, urged the participants to brainstorm on possible ways of improving tax collection at the state and local government levels.
He added: “We want to see a situation where the local government can at least generate the amount that can pay their salaries.”
The workshop which has directors of finance of local governments, revenue officers from the local government as well as staff of the state Internal Revenue Service, is aimed at creating an enabling environment for businesses to thrive and encourage voluntarily tax compliance.
He added that “at the federal level, 90 per cent of the revenue comes from oil, at the state and local government, about 99 per cent of the revenue comes from the federation account and that is still oil. This is a very dangerous trend and has been a headache for the commission. The oil is a natural thing, it can finish and supposing it finishes today, can 10 to 20 per cent that comes from non oil sustain the country for one day? The state and local government is the worst because we normally collect monthly returns and we see how they collect their tax. It is very discouraging so this workshop is timely.”
