By peter uzoma
Commercial and business activities were grounded yesterday in Owerri and other parts of Imo state as commercial banks operating in the state were under lock and key, no thanks to a tax-related disagreement with the state government.
Residents of the state who had business transactions with the various banks and the bank workers scheduled for duties experienced a rude shock in the early hours of yesterday when government officials gagged the banks and barred any activity and business transactions.
The affected banks were UBA, First Bank, Zenith Bank, Fidelity Bank, Diamond Bank, Union Bank, Keystone Bank and Enterprise Bank where each of the branches were expected to pay N3m to government coffers.
However, the state government said that the action was taken in compliance to a court order granted the Board of Internal Revenue, (BIR), authorizing it to act against the affected banks after their failure to heed to repeated demands of the Board to fulfill their statutory obligations.
A visit to offices of the banks showed that embattled customers milled around the banks without getting attention from the banks. It is only in some cases where the ATM operated and the queue to withdraw cash was excess forcing customers to leave. At a time, available cash could not pay ATM operators.
Those who could not face the ordeal but needs cash for various assignments traveled outside the state to obtain cash.
Initially, residents of the state who were stunned by the development believed the banks closed shop for fear of robbery attacks until some workers opened up on the involvement of the state government.
Irrespective of the stress faced by residents of the state and the fast approaching Christmas, Commissioner for Internal Generated Revenue (IGR), Nick Opara Ndudu who is incharge of the new Ministry of the State Board of Internal Revenue, (BIR), said the premises of the eight (8) commercial banks in Imo State were sealed for their failure to pay to the State Withholding Tax on interest paid to customers.
Addressing newsmen to clarify the issue, Opara Ndudu disclosed that “it was taken as a last resort and following non compliance with the provision of the law by the affected financial institutions. This action of the Board of Internal Revenue is intended to send a clear signal to all organizations and institutions operating in the state on the need for them to meet their statutory obligations to the state”.
While stating that the court order was carried out in conjunction with men of the Nigeria Police, Opara Ndudu disclosed that the total sum owed BIR by the banks amounted to about N2bn.
The Commissioner denied claims by some of the banks that they had paid the Withholding Tax, adding that the timing of the sealing of the banks is not meant to discourage people from doing business in the state.
He further appealed to all institutions operating in the state to meet their statutory obligations with respect to taxes and other approved levies within the time frame.
