IGR? IT'S PAY AS YOU EARN

Reading or hearing about internally generated revenue by state governments in Nigeria could give the wrong impression about more being reward for official effort or strategy. From the look of things, it is more a matter of how many workers are resident in your state.
According to figures from the National Bureau of Statistics (NBS), the bulk of today's IGR by most states is made up of pay as you earn (PAYE) deducted at source and paid to government. The only effort needed is to ensure it is paid to schedule.
Hence states like Lagos where majority of Nigerian workers reside for ease of resumption at work places daily, IGR tops the lot across the country.
Yet, says the NBS, by 2015 PAYE made up 65.4% of Lagos state IGR with direct assessment chipping in only 3.43% in addition to 3.55% from road taxes.
Lagos was not alone. Among the top ten IGR harvesters in 2015 as analysed by Henates in a post yesterday, May 30, Rivers, Oyo, Ogun, Anambra,  and Kano did not have breakdown of IGR into sources.
Delta state had and it showed clearly that 87.5% of its 2015 IGR was from PAYE with direct assessment and road taxes contributing less than 2%.
The same with Bayelsa state which raked in 86.7% of its IGR from PAYE and Akwa Ibom where in the same 2015, PAYE was responsible for 78.4% of IGR.
Among the top ten IGR states only only Enugu had a different story to tell with its IGR composition . Its own rake for 2015 was contributed to only 28.3% by PAYE with revenue from other sources other than direct assessment and road taxes contributing 69.7%.
Edo state had landed fifth position in terms of IGR value for 2015 but this too was beefed up 50.3% by PAYE.
Kwara state led drops in IGR by 2015 even at that, its own breakdown attributed 52.6% to PAYE while 40.2% came from sources other than direct assessment and road taxes.
Cross River state got mentioned too because it was among states with double digit drops in 2015 IGR.
This time its breakdown commands attention because only 42.6% of its IGR came from PAYE, the bulk (54.8%) was from sources other than direct assessment and road taxes.
It should be noted though that what Lagos from its second placed contributor (Other sources: N74076.1m) was more the full IGR of any other state in the federation not to talk of the N175434.3m it got from PAYE.
So, desirous of increasing your state IGR as soon as possible, the surer but longer term way to go is to encourage residents, investors and aid institutions to set up companies that will add more and more to the national economy officially. That way you get to build up your PAYE base.
Meanwhile, in the interim, get into more direct assessment and others in the short tern.
Lagos is today reaping bountifully from oil money spent to develop it when it was the nations capital and also from strides taken in recent years in IGR generation and purposeful development of infrastructure.

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