Some Traders Won’t Pay Taxes Without Visible Services : SIDEC Tells Anambra Govt

A coalition of non-state actors, Tax Justice and Governance Platform, (TJ&GP), has charged Governor Chukwuma Soludo-led administration in Anambra State to use part of the revenue generated from markets to address their challenges to spur voluntary compliance by traders.
Angel Network News (ANN) reports that
the group made the call during an advocacy visit to the Special Adviser to the Governor on Markets, Chief Evaristus Uba, to brief him on its Tax for Service project implemented by Social and Integral Development Centre, (SIDEC) in partnership with Civil Society Legislative Advocacy Centre, (CISLAC), funded by Oxfam Nigeria.
Its Lead, Ugochi Ehiahuruike in her speech
explained that the campaign which started with nine markets has been scaled up to twenty-one markets across the three senatorial zones of the state.
“We embarked on a study to determine why traders don’t pay their taxes so that we can make recommendations that will inform the decision or policy of governments.
“We visit you because you’ve supported this project from the time FCDO was funding it till now Oxfam is supporting it. We appreciate you for standing with us in the Tax Justice and Governance Platform in Anambra State, as we implement this project.
“Our visit is to share our findings from the major markets with you because we believe that our recommendations will inform the decisions that you take going forward. We recommend zero cash collection with respect to revenue, levies, fines, and taxes. We also encouraged e-payments.
“We commend the governor for the good work across the state especially massive road construction. In this project, we want to see more people captured in tax net. We want to see more people paying voluntarily so that government don’t spend much on enforcement. We also want to see people paying with ease.
In his response, SPAD Market, Chief Uba, decried the connivance between market leaders and traders which often lead to evasion of tax payment, while also violating the original plans of the markets.
“From a civil servant earning the 70,000 minimum wage, government automatically collects tax of more than 30,000 annually. But a trader making a turnover of five million naira finds it very difficult to pay 17,500.
“Some of them in government markets pay 12,500, but they go ahead to collect rent of 600,000 per annum on the same shop. Even at that, he still will not like to pay the 12,500 to government. Our people just don’t like to pay their taxes and such attitude is not good for development,” Uba regretted.
“Some of the markets originally have toilets facilities but they converted them to shops to make money. Majority of these markets were not built government. They were developed by individuals, traders.
Chief Uba further noted that government has taken steps to address anomalies which rob government of revenue from the markets. “We are digitizing the system beginning from the Ogbaru Main Market.
Also, if you want to develop market, you must have a plan showing provision for all the amenities before we give you approval. You must have the conveniences. You must have a parking space and we give the capacity of the market.
The SPAD assured that the concerns of traders would be gradually addressed by the government.
“The markets you mentioned are receiving attention. Niger Street from Bridgehead, Sokoto Road Creek Road and others leading to the Main market Onitsha have been tarred with pedestrian sidewalk. Then Ochanja, Wall Street from main market all the way to Upper Iweka has been done just to make the market accessible.
In terms of water, there is a holistic water policy for the state, and we are reviving all the water schemes which will supply water to those markets.
The findings showing the needs of the twenty-one major markets surveyed across the three senatorial zones were presented to the SPAD on Market with an appeal to him to give them priority attention.