Ekiti State Governor, Dr. Kayode Fayemi, has declared that his administration would no longer condone tax evasion by citizens and agencies in a bid to generate more funds to execute more capital projects in the state. The Governor who stated this on Tuesday while declaring open a two-day retreat for the officials of the Judiciary and Internal Revenue Service at Ikogosi Warm Spring Resort warned that relevant laws would be invoked to ensure that the state is not robbed of taxes due to it.

Dr. Fayemi disclosed that his administration was able to increase the internally-generated revenue from the N109 million mark he met on assumption of office to over N600 million monthly because of mechanisms put in place to plug the loopholes through which money due to the state illegally find their way into private pockets.

He also clarified that his administration had not increased taxes payable by the various segments of the population urging individuals and corporate organizations doing business in the state not to shirk their civic responsibilities of paying their taxes.

The State Chief Executive also used the forum to clarify that the Personal Income Tax Act (PITA) being criticized by the academic staff of the state university was not the making of his administration but was passed by the National Assembly stressing that he was duty-bound to enforce it.

He described as unacceptable a  situation in where a professor at the Ekiti State University (EKSU) who earns over N500,000 monthly pays N9,000 as tax, while his counterpart at the nearby Afe Babalola University (ABUAD) pays an amount that is almost four times more. Failure to enforce the PITA, according to Governor Fayemi, would give him away as a lawbreaker, stressing that he would not be party to breaking any law duly passed by the parliament elected by the people.

Dr. Fayemi said, “I held a meeting with members of the EKSU branch of Academic Staff Union of Universities who are bent on continuing their strike over the PITA being implemented.

“I asked one of the ASUU members who is a professor how much he earns monthly even though I know how much he earns. He told me that he earns about N500,000 monthly and I asked him the tax he pays on the amount and he replies that he pays N9,000.

“A professor at ABUAD pays times four of that amount as tax and you know ABUAD is the highest revenue generating institution in the state outside the Ekiti State Government.

“PITA was made by the National Assembly and I am duty-bound to enforce it because I don’t want to be a lawbreaker. Once our citizens pay their taxes then they have the right to ask the government how their monies are being spent.” The Governor who emphasized that lawlessness and impunity concerning
issues of taxation would not be tolerated in the state said he would not be deterred by any criticism in his resolve to ensure that the state revenue profile improves.

He explained that his administration is ready to learn from the example of Lagos State which now generates over N20 billion every month and can survive without allocations from the Federation Account

  The Governor  said Ekiti State is “seriously resource-challenged” as it ranks 35 out of 36 states on the nation’s revenue ladder noting that much needs to be done to shore up the state revenue base to meet up with the expectations of the masses.

Dr. Fayemi expressed satisfaction that his administration has been able to utilize the scarce resources available to the state to ensure massive infrastructure development of the state which has been acknowledged within and outside the country.

Earlier in his address, the Chairman of the State Internal Revenue Service, Mr. Isola Akingbade noted that the enforcement of the law is needed to ensure compliance in payment of tax.

Akingbade noted that social amenities can be provided when people pay their taxes regularly adding that allocations from the Federation Account are not enough to meet the needs of the people of the state.

The state revenue chief commended the state government for giving autonomy to his agency freeing it from the civil service encumbrances.

The chairman of the occasion and founder of ABUAD, Chief Afe Babalola, said there was need for collaboration between the judiciary and the state revenue service to block all loopholes exploited by tax fraudsters.

Babalola who was represented by Prof. Adewale Alawiye, hailed the Fayemi administration for the unprecedented transformation of the state saying it is ironical that tax evaders also benefit from the amenities provided by the government.