Kogi Migrates to Digital Tax System for Transporters

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In a bid to curb fraud and augment revenue due to government, the Kogi State Government has launched a new digital tax system for transporters in the State.

The state governor, Ahmed Usman Ododo on Monday officially flagged – off the Infrastructure Maintenance Levy Collection, describing the digitalized tax system as “revolutionary.”

The governor revealed that the new digital tax system will enable government to fuel developmental projects in the state.

“We envisage this digital platform to not only simplify tax compliance but also unlock substantial revenue for development projects, thereby strengthening our state’s economy,” Ododo who was represented by the Secretary to the State government, Dr. Folashade Ayoade stated.

The Executive Chairman, Kogi Internal Revenue Services (KGIRS) Mr. Sule Salihu Enehe said the new digital tax system will provide easy payment options for both transport, as well as promote transparency, reflecting accountability.

He said though the taxation for Infrastructure Maintenance Levy has been on ground since 2017, the scheme was not yielding positive result due to the manuel method of collection that gives rooms to fraud and racketeering.

“Infrastructure Maintenance Levy collection actually started in Kogi State in 2017. The State is yet to optimise the potential like in other Sister States. Thereafter, today being set-aside for the flag-off, it’s to rededicate the commitment of the Service for the collection of the revenue which we generally referred to as the ‘flying revenue’.

“Although, IML collection has had many ups and downs since 2017 with low revenue collection, we have, thus, decided to adopt digital devices for seamless collection, going forward, and with this initiative, amongst others, we are confident that the revenue will improve significantly.

“I would like to appeal to our critical stakeholders in the transport sector to cooperate with the Revenue Body and make the IML collection a success. The critical stakeholders referred to are; Tricycle Owners Association of Nigeria (TOAN; National Union of Road Transport Workers (NURTW); Road Transport Employers Association of Nigeria (RTEAN), National Association of Road Transport Owners (NARTO); Motorcycle Operators Union of Nigeria (MOUN) and others.

Enehe however appealed to law enforcement agencies, Local Government officials and traditional rulers to support the method to succeed.

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