This is indeed not the best of time for business and shop owners in both Enugu and Ebonyi states following the increasing rate of taxation by the state governments.
WITHIN NIGERIA findings showed that while the previous administrations in these two South East were so much mild and civil about taxation, the present administrations have continued to manifest their opposite.
Enugu state
In Enugu state, it was a hell loose as in the previous administration shop owners paid N5500 while the present administration of Dr. Peter Mbah, they currently pay as high as N36,000 each.
In a chat with our reporter, one of the shop owners in Ogbete main market, Enugu, Mr. Vincent Udeagha told WITHIN NIGERIA that the situation is becoming unbearable by the day.
” We are currently not happy with the Enugu state government over the high taxation in the state.”
Explaining further, Mr. Udeagha narrated that ” during the time of Governor Ifeanyi Ugwuanyi, there was not much taxation in the state as we see it today.
” We were paying something like N5500 every year. But today, we pay up to N26000 annually, irrespective of whether you have the money or not.”
Also speaking to our reporter, another businessman, Onyi Ekenedirichi Daniel explained that the taxation in the state is much suffocating.
In a letter he wrote to the state governor and made available to our reporter, Mr. Daniel said that
“I’m writing to express concerns about the high taxes imposed on businesses in Enugu State. During your campaign, you promised a conducive business environment, but the reality is different.
“Taxes ranging from N30,000 to N36,000 per year are unsustainable and suffocating. Many shops are closing, and businesses are relocating to other states with more favorable tax regimes.
“We left our comfortable homes and businesses in other states to come to Enugu State in search of opportunities, but the high taxes and harsh enforcement are making us feel uncomfortable and
unwelcome.
“A specific case that highlights the plight of business owners is the shop that your team sealed this morning. This shop has been closed for months due to lack of funds to restock and revive the business. Why did your team wait for months before taking action?
We urge you to reconsider the tax rates and bring them down to a more manageable level. This will encourage businesses to thrive, create jobs, and increase economic activity in the state.
“We believe that a reduction in taxes will lead to increased revenue for the state through increased economic activity.
“We hope you will take our concerns seriously and take immediate action to address this issue.”
Further checks by WITHIN NIGERIA showed that not only shop owners in the state bear the brunt of taxes.
Wheelbarrow pushers pay N200 every market day, sachet water sellers equally pay N200 every day while keke tricycle and commercial motorbike riders pay d N350 daily e-ticket.
Every vegetable seller and other petty traders in the street including groundnut sellers pay N200 daily.
Apart from business owners, property owners also feel the heat of taxation in the state.
House owners in Enugu also pay as much as N70,000 for property rate irrespective of whether the house is commercial or not.
Findings by our reporter showed that in some local governments like Udenu, the state government has started the full enforcement of the implementation.
Our reporter equally gathered that to put up four rooms bungalow in the state, you have to pay ESWAMA (Enugu State Waste Management Authority), N350,000; Town Planners, N250,000; Development levy, N200,000, Youth 250,000; Security levy, N150,000.
Ebonyi state
In Ebonyi state, the story is still the same. In fact, some residents are of the opinion that Enugu state government is even milder than that of Ebonyi state.
In a chat with Ugwu Osita, a shop owner in Abakaliki lamented that the state government is gradually killing business in the state with high taxes
According to Mr. Ugwu, the situation is very painful.
“In Abakaliki, someone’s shop rent is 60,000 naira a year, but then the Ebonyi State Government Tax Force has hit them with a 50,000-naira signpost bill that has to be paid within a week.
“This person has already settled this same tax at the local government level.
“On top of that, they’ve paid N14,000 in annual dues and shelled out another 10,500 naira for a government bucket. They’re also paying an environmental tax of 15,500 naira. And that’s not even mentioning the many other taxes they’ve covered.
“All of this, and they still have to manage a shop with a yearly rent of just 60k. It’s outrageous when you think about what’s left over for the business itself.”
Explaining further he said that “this is a state that claims to want investors, yet those of us with small shops in Abakaliki are struggling daily under such heavy taxation.
“It feels really wrong. I’ve never seen anything like it until I got a message from a trader today, crying and saying they want to shut down because of these burdensome taxes.
“Honestly, it’s disheartening! This isn’t how a state should be run.”
A breakdown of taxes business owners in the state showed that there are multiple taxes that a trader has to grapple with.
Some of them are bucket waste, N10,500; business premise waste management: N14,000; advertising signpost: N8,200 (for local government); another signpost tax: 50,000 naira (this one’s for the state).
According to Mr. Ugwu, “there are still more receipts they haven’t sent me yet. How is this person supposed to survive?
“Let’s be honest with ourselves. Some of those collecting these taxes don’t even run shops, so they can’t possibly understand the struggles faced by small business owners.”
Enugu, Ebonyi states government defend high taxes
In its defense the Deputy Governor, Ifeanyi Ossai has provided during the Annual General Meeting of the Enugu Chamber of Commerce, Industry, Mines, and Agriculture, held at the Chamber’s Secretariat.
Representing Governor Peter Mbah at the event, Ossai assured the business community that the administration’s decision to adjust taxes was aimed at fostering business growth and ensuring sustainable development in the state.
According to Ossai, the tax increment was a difficult but necessary decision, taken to address the challenges posed by dwindling federal allocations and to encourage inclusive participation in the state’s development.
“We are working to make Enugu a hub for businesses. We are committed to doing everything within our power to ensure businesses thrive in the state,” Ossai said.
He acknowledged the discomfort associated with paying taxes, emphasizing that the decision was in the best interest of the state’s economy.
“We know it hurts to pay taxes, but those who complain the most are often those who have been benefitting from loopholes in the tax system. These decisions were tough, but they are necessary to prevent economic collapse,” he added.
In his own reaction, the governor of Ebonyi state Hon. Francis Nwifuru has defended alleged high taxes in the state.
In his reaction, Mr. Nwifuru explained that “taxes are meant for the development of the state. You don’t expect our state to provide potable water, access roads, and other infrastructures without the citizens paying their taxes.”