Home HOME Bayelsa clamps down on companies’ tax evaders,IGR hits N1b annually

Bayelsa clamps down on companies’ tax evaders,IGR hits N1b annually

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By Ebiowei Lawal

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YENAGOA-The government of Bayelsa state has commenced an operation to shut down companies operating in the oil and gas sector that have continued to evade remittance of tax to the state. Meanwhile the state has risen its revenue profile to N1 billion annually since it began its clamp down on companies evading tax in the state.

The chairman of the Bayelsa State Internal Revenue Board, Nimibofa Ayawei gave this hint while addressing newsmen in his office in Yenagoa.

According to him the state as a result of this couldn’t meet its financial obligations when the country went through recession few years ago.

Ayawei explained that, with oil and gas servicing companies evading tax, the States’ Internally Generated Revenue (IGR) profile stood between N70 million and N100 million annually.

“When we came on board, our initial thought was that we could raise N1 billion from SMEs across the state that was wrong because we able to raise a paltry sum of N70 million annually.”

Explaining further, he said that in a bid to shore up the IGR in the face of recession, the board moved to the Bayelsa axis of the Atlantic ocean where it made its first major breakthrough.

The state, according to Ayawei, has raised its revenue profile to N1 billion annually since it began its clamp down on companies evading tax in the state.

He said to ensure that tax remitted to the state doesn’t go into the pocket of tax collection officials, the state is the first state in the federation to introduce the Point of Sale (POS) payment system.

“Recently we discovered that some companies come into Bayelsa though the Atlantic ocean, do their business and leave without paying tax to us.

“The worse part is that, when they leave Bayelsa state to Lagos, Delta and Port Harcourt where they come they pay tax there and leave Bayelsa to go cap in hand.

“It was at that point we said no to tax evasion in Bayelsa state. Today we have identified such companies and have put them on our tax chart. So as I speak with you, our IGR has risen to N1 billion annually.

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