While the dust over the take -over of the functions of the Board of Internal Revenue by management consultants is yet to settle, there is fresh uproar in the Board following the latest take- over of motor licensing duties by another set of insurance companies
This has frayed the nerves of some workers of the Board who are spoiling for a showdown except urgent measures are taken to address thorny issues threatening to put the aggrieved staffers on a war path
This Newspaper had reported a fortnight ago that the revenue of the State had dwindled because of the appointment of consultants by the Imo State government, a move considered illegal as Edict No.6 of 1978 establishing the BIR forbids it.
Fresh trouble however burst when the IGR consultants appointed Courtville Business Solution to handle the automation and issuance of Motor vehicle licenses in the State and collect all revenues accruing from it. The most annoying aspect is that proceeds accruable from this area is said to be allegedly made available to the IGR consultancy committee led by one Mrs Chioma Okpaleke
This has not gone down well with staffers of the BIR who feel that they should have been trained and engaged to carry out the assignment. And to add salt to injury, another consultancy firm, Financo Brokers was contracted as the only insurance company to handle all motor vehicle insurance business in the State, thus shutting out other insurance companies from business in the State.
There are also allegations that the insurance company has hiked the prices forcing most motorists in the State and vehicle owners to transact their business outside the State to renew their vehicle particulars.
This development has really put workers in the BIR on war path not only with the consultants but with the Hon Commissioner for Internal Resources and Pension Affairs, Hon Nick Oparandudu.
One of the workers who spoke on condition of anonymity said it is difficult to tell a civil servant to hand over to a contractor, official and security documents, stating that this is the case in the commission where civil servants are made redundant while consultants who lack the expertise to carry out the functions take up their duties.
This is also a far cry in other States of the federation, such as Lagos and Abia States where the use of consultants to collect IGR has been banned.
In Lagos State, it was learnt that over 3,000 graduates are in the employ of the BIR manned by professional tax experts which has led to a sharp rise in the IGR of the State to the tune of N28 billion naira per month.
In addition to this, a document obtained by this Newspaper outlined reasons why Imo State has continued to have poor revenue generation.
Top on the agenda is the absence of a Chairman/Chief Executive for the Board who is supposed to be a person sound in the area of tax administration, a tax professional and a member of the Chartered Institute of Taxation of Nigeria.
Another reason is the manner Tax Management Audit (TAMA) activities has been allegedly contracted out of the commission by the Honourable commissioner to one Mr. Uchendu and Mrs Chioma Okapleke which has led to the opening of several account numbers not known to the staffers of the BIR
Also, there is furore over the increase in prices of registering fleet numbers which has been increased from N3, 500- N8, 000 by the IGR management committee. This is coupled with allegations that the monies realized from this exercise do not reflect in the BIR accounts and why its operations have to be done from the premises of Owerri municipal council.
The increase in Capital Tax Gains (CGT) is also another anomaly raising fresh dust in the commission. Despite Governor Rochas Okorocha’s call on land owners to develop their land, it has not been feasible because of the increase in value of plots of land by the IGR committee and Hon Commissioner for Internal Resources and Pensions, thus making it difficult for landowners to pay the 10% Capital Gains Tax on properties and register their lands.
“For instance, a land at Housing Area B is N500, 000 while in the new chart it is N7, 500,000. So, the new rate scares people away from registering their lands when the Governor had mandated owners of land to develop them” said a staff of the commission who pleaded anonymity.
Efforts to speak to the IGR committee boss, Mrs. Chioma Okpaleke were futile as she was said to have travelled out of the country.
