Delta’s IGR rises to N34.75b

BUOYEDby the recent reforms and sustained process, the internally generated revenueof Delta State has increased from N14billion in 2009 to N34.75 billion as atDecember 2011 with a monthly average of N2.9billion, the Chairman of the State Board of Internal Revenue, Mr. Joel-OnowakpoThomas has disclosed.

Thomaswho spoke in Asaba at the weekend during visit by the Commissioner forInformation, Mr. Chike Ogeah said that the current fiscal year was a verybright year as it should be able to raise the revenue to N69 billion but thedream was cut short by the signing into law of the Personal Income TaxAmendment Act 2011 (PITAM 2011) by President Goodluck Jonathan.

Whileapplauding Jonathan for listening to the yearnings and cry of the middle classby signing the Personal Income Tax Act 2011, he advised that Nigerians must nottake their mind from the fact that it came with its threat to existing staterevenue collection equation.

Thomaslisted the implications of the new tax law as refund implications because thenews of the signing of PITAM 2011 came to tax administrators in December 2011while the purported date of signing was in June 2011.

Helamented: “I assumed that this particularly tax law was back-dated because, Iam unable to understand why a law signed in June 2011, was made public inDecember 2011. This is rare especially in growing economies like ours and itcomes with serious implications like tax refunds.”

Againthe Delta Revenue Board Chairman said that the new tax law had the capacity toreduce the State Tax Revenue by 63 per cent of collection prior to theintroduction of PITAM 2011.

Buttressinghis argument, Thomas explained that the average IGR collection for the statebetween January and June was N4.1 billion, adding that the collections for Junewas N4.2 billion and for July N3 billion, a figure that resulted in a revenueloss of N1.6 billion in June and N1.8 billion July.

Soundingoptimistic, however, he said that the IGR for the state would close at N48billion which was within the benchmark of the IGR budget for 2012.

Headded that the board had been able to curtail the losses and explored new areaswhere it would continue to sustain and grow the state’s revenue.

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