By Ejike Nnaji
A sound tax system is not merely about collecting revenue; it is about building a fair, transparent and accountable framework through which citizens contribute to the development of society and governments can deliver public value.
Taxation, from an international perspective, is widely recognised as one of the most important instruments through which governments finance public services, infrastructure and sustainable development. However, effective taxation is not simply about increasing tax collections. It requires fairness, transparency, accountability, simplicity and public confidence. When revenue systems are properly structured and leakages are reduced, governments are better positioned to convert legitimate public revenue into tangible development.
Against this backdrop, the ongoing taxation debate in Enugu State should be examined within the broader context of revenue reform, accountability and public interest.
Before the administration of Governor Peter Mbah, illegal and multiple taxation was a significant concern across various parts of Enugu State, with numerous levies reportedly imposed and collected without proper accountability or clear remittance into government coffers.
In many instances, the proceeds were allegedly diverted into private hands, fostering a system that served individual interests rather than the collective good of the people of Enugu State.
It is therefore important to situate the current taxation debate within its proper context. Most of the taxes and levies being referenced today did not originate with the Mbah administration.
Ground rent and several other statutory revenue streams have existed for decades, and residents as well as businesses have consistently been obligated to pay them. What the present administration has undertaken is the strengthening of revenue collection processes, the expansion of the tax base, the enhancement of accountability mechanisms, and, critically, the closure of loopholes that previously enabled individuals to appropriate government revenue for personal gain.
The introduction of a more transparent and structured revenue system should not be misconstrued as the creation of new taxes. Rather, it reflects an effort to ensure that legitimate government revenues are properly remitted into public coffers and ultimately utilised for developmental purposes.
For example, when concerns are raised about market women paying ₦300 daily, it is equally important to consider how much these traders were previously subjected to through multiple, often uncoordinated levies. It is also necessary to question the disposition of those funds and the accountability mechanisms that existed at the time.
The discussion, therefore, should not be limited to the current rates without a broader examination of the historical system.
A transparent, accountable and well-regulated revenue framework is far more beneficial than a situation in which citizens are burdened with multiple unauthorised collections while the government derives little or no benefit.
Stakeholders who are genuinely committed to the progress of Enugu State should support ongoing efforts to eliminate revenue leakages, curb illegal collections, and ensure that all legitimate revenues accruing to the government are properly accounted for and effectively utilised.
If certain interests that previously benefited from systemic loopholes are now uncomfortable due to the tightening of the system, such concerns should not be used to undermine the reforms. The pertinent question remains whether public revenue is now being more effectively managed and whether citizens are receiving commensurate value in return.
Constructive criticism is both necessary and welcome; however, it must be grounded in facts, proper context, and a fair comparison between the previous system and the current reforms.
Ejike Nnaji
Writes from Amechi-idodo,
