Edeoga begs Mbah for mercy over ‘heavy taxes’ in Enugu

The candidate of the Labour Party in the 2023 governorship elections in Enugu state,Chijioke Edeoga, has pleaded with Governor Peter Mbah to exercise discretion in imposing taxes on the people.

Edeoga, who accused the state government of “multiple taxations”, appealed to Governor Mbah to “have mercy on the people of the state” by reducing the tax burden that purportedly came into operation since the advent of the present administration in the state.

In an open letter to the governor, Edeoga highlighted the multiple tax increases, arguing that such an excessive tax regime has led to deaths, frustration, and the flight of businesses away from the state.

“You have increased tenement tax for bungalows in Enugu metropolis from N30,000 to N150,000 per annum. Tenement tax for high-rise buildings in high-density areas of Enugu metropolis increased from N50,000 to N300,000.

“Tenement tax for high-rise buildings in low-density areas of Enugu metropolis increased from N80,000 to N400,000. Land instrument/title registration increased from N70,000 to N300,000. Private school tax increased from N30,000 to N200,000 per annum.

“Trading shops of all kinds were forced to pay a new flat rate of N21,000 wherever they are located in the state irrespective of the number of persons occupying them.

“This excludes charges for refuse disposal and management and other arbitrary charges.

“Daily taxes for all buses operating in the state increased from N200 to N2,000. Daily taxes for Tricycles/Keke increased from N100 to N450. Daily taxes for barrow pushers increased from N100 to N2,000.

“Small business premises tax soared to N25,000. Medium business premises tax skyrocketed to N56,000 while malls are made to pay N200,000.

“We have a Purchase tax that ranges from N5,000 to N15,000 depending on location. This has been imposed on groceries and all factory products, from which VAT had already been collected, meaning there is double taxation, assuming that all other taxes listed are morally justifiable.

“This is happening when the government has failed to provide stable electricity and even in the infrequent times that public power is available, the people still battle with crippling estimated billings because the power company has not democratized the installation of prepaid electricity metering systems.”

Edeoga who referred to what he called tax principles laid down by renowned economist, Adam Smith, contended that good taxation must adhere to the principles of fairness, certainty, convenience, and efficiency.

He said that the people of Enugu State are being taxed without their input or regard for their capacity.

He appealed to Mbah to reconsider his approach to taxation by factoring in the economic realities of the people, the ability to pay, and the future economic growth of businesses in the state.