Rivers State Revenue Agency Targets Tax Evasion and Multiple Taxation
The Rivers State Internal Revenue Service (RIRS) is intensifying efforts to combat tax evasion and the issue of multiple taxation within the state. Executive Chairman Israel Egbunefu announced this initiative during a recent management meeting in Port Harcourt.
Egbunefu emphasized that this proactive measure is necessary to mitigate significant revenue losses attributed to the high incidence of tax evasion in the region. His comments came during a breakfast event organized in conjunction with BusinessDay Media, themed “Leveraging Nigeria’s Tax Law to Increase Profitability.”
The gathering aimed to address various aspects of Nigeria’s tax laws and how they can be utilized to enhance profitability for entrepreneurs in Rivers State and the broader South-South geopolitical zone. Key stakeholders from the private sector, including representatives from the Port Harcourt Chamber of Commerce, the Manufacturers Association of Nigeria’s Rivers State Branch, and the Yenagoa Chamber of Commerce, were in attendance.
Egbunefu noted the critical relationship between effective tax management and business growth, stating that to curb tax evasion, RIRS utilizes employers as tax agents for Personal Income Tax (PIT) payments. He clarified that RIRS does not directly collect taxes from businesses; instead, businesses are responsible for withholding and remitting taxes from employee earnings.
Egbunefu expressed concern over compliance levels, revealing personal anecdotes to underscore the challenge. He described instances where individuals reported frivolous expenditures as income during tax appraisals, reflecting a broader issue of tax compliance.
Addressing the problem of multiple taxation, he mentioned that it has sparked numerous lawsuits and even led to physical intimidation from local government authorities demanding payments. “We receive complaints about excessive demands, with some municipalities collecting up to 30 different levies from businesses,” he explained.
To streamline tax administration, RIRS is digitalizing payment processes and reaffirming that tax demands should no longer be issued in handwritten form or personal accounts. Egbunefu’s collaboration with BusinessDay aims to enhance tax education and efficient management systems, promoting a more transparent and equitable fiscal landscape in Rivers State.
This partnership reflects a commitment to fostering economic literacy and supporting constructive dialogue between government entities and the business community, reinforcing RIRS’s overarching mission to create a fair and responsive tax system.
