How I wish Nigerians will be assertive where issues that will directly affect their lives is brewing.
There is no shortage of new policies in Nigeria, often I wondered what politicians think of the general public, to be frank I think they think most Nigerians are not bright. Why did I say this? Well, why would anyone introduced a new policy without providing clear strategy of how proceeds will be spent to the contributors?
Osun state plans to generate internal revenue because federal government obviously has no money to distribute like in the past. This new policy is called Economic Development Levy (EDL). This is to be levied on business owners. Most people in Osun state are business owners (worth of the business for most is another story). More than half of Nigeria population live in rural area, this is more evidenced in a place like Osun state. Rural infrastructure have been neglected for decades in Nigeria, Osun state is not exception.
To be clear I don’t think Nigeria can develop without all working adults contributing their fair share of taxes, I am in support of taxation. However, I do not think one can achieve this by imposing levies on all persons. Just walking down our streets, it is clear people have different economic strengths so imposing blanket taxes on everyone just because they have a stall of 5000k naira worth tomatoes is unfair.
The first thing that came to mind when I read the new policy was ‘can you please tell us what you intend to do with this new fund’. For years that Nigeria enjoyed high oil price, there is almost nothing to show for it in terms of infrastructural development, now that oil price has reduced significantly, (only in Nigeria) politicians want to retain all the perks, how can this be possible?
While I have loved some of Ogbeni Aregbesola’s policies, I just think this blanket cover of tax collection is a bad idea without stating clearly how and what he planned to use the fund.
In developed countries where they have managed to make significant progress in tax collections, people have lots of incentives to pay their taxes; public libraries, public parks, galleries, clean roads – all of these and others are accessible to all.
If Mama Olobi is now going to be faced with paying taxes based on the size of her stall, what is she getting in return? It will not be fair to collect money from Mama Olobi only to be told stories of civil servants salaries for example – if the state can’t afford to do some things as they used to, then maybe to let go of the excesses?
Secondly, is there going to be exceptions? How can you aim to tax every stall holders when we know that some people are clearly living from hand to mouth in our neighbourhoods?
If my 80+ year old mother who insisted on selling her worobo (petty trade) is approached to pay taxes because someone thinks she has money, (by the way her trade fund comes from my sisters and I), what is she getting in return? She has been on medication for high BP and diabetes for years, would she be eligible for subsidised meds?
Perhaps low oil price has exposed our states to reality of importance of self-sustainability, but one thing that we can all agree on is the inequitable of wealth distribution as our major problem – if all adults are now going to be approached to pay taxes, then the fund collected can not be used to service the unsustainable activities of the past, otherwise no progress in my opinion.