- Kogi Govt Did Not Propose Devilish Tax Regime, Says Deputy Gov
- Information Commissioner, Trade Ministry Back Imposition Of Tax
By Gbenga Abulude (Politics and General Desk)
The Kogi state government has backtracked on his plan to impose levy on loaves of bread being sold in the state amid discordant tunes among the state’s executive members.
The state government had recently issued a statement to levy every loaf of bread sold in Kogi, a move that the government claimed was meant to protect indigenous bakers from those who bring bread to the state without paying any form of levy.
The decision to levy bakers of bread attracted criticism. Former lawmaker, Senator Shehu Sani reacted in a tweet that the governor was turning bread into stone after appearing to have defeated coronavirus.
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“After defeating COVID in Kogi, Bello the priest is miraculously turning bread into stone,” the former lawmaker wrote.
The Kogi state government appeared to have backtracked on Saturday after it condemned the same tax levy it imposed on loaves of bread to be marketed in the state.
Kogi deputy governor, Mr Edward Onoja made this known in a statement.
It was gathered that the state government in a plan to generate revenue, hired a consultant, Musag Enterprises to levy bakers and caterers for every loaf of bread and confectionery they produce in the state.
The state’s Ministry of Commerce and Industry made the introduction on Nov 9, through a memo signed by its permanent secretary, Usman Ibrahim.
The memo was addressed to the chairperson, Association of Master bakers and Caterers of Nigeria, Kogi State branch. The collection of the levy was billed to commence on Monday.
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But the levy which attracted criticism to the state government because it was coming at a time most businesses have not recovered from the economic effects of the pandemic, was also justified by the state’s Commissioner of information, Mr Kingsley Fanwo.
Fanwo had said the levy was not new and that the engagement of a firm to collect them was one of the state’s strategies for protecting its indigenous bakers.
He said indigenous bakers in the state had complained of poor patronage due to bakers who pay no tax to the state bringing bread from outside the state to sell in Kogi.
But the Deputy Governor on Saturday countered the Commissioner and the Kogi Ministry of Trade and Industry when he disapproved of the planned levy. He said the governor was not aware of the agreement between the ministry and the consultancy firm.
He added that the government vehemently condemned the devilish bread levy and it was not approved by the state executive council.
“For the records, neither the Governor nor the state executive council has imagined or proposed such a devilish tax regime, how much less imposing same on any food or essential commodity, not to mention bread which is a table staple and the basic lifeline of many a household.
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“I am directed by His Excellency to give the lie to news of an alleged tax imposed on each loaf of bread to be sold in Kogi State. There is no iota of truth in the claims that we have approved such wickedness, because we have not and cannot,” he said.
Onoja said he was also shocked by the planned levy as it was against government stand that the people of Kogi State must not be subjected to any act or policy that will increase their pains in this Covid-19 season.
The Deputy Gov who outlined Government’s intervention on the impact of Covid-19 pandemic on the people said the tax levy on bread runs contrary to the state government policy.
He said, “It is well-documented in the media that Governor Yahaya Bello has fought powerful forces, more than any other governor perhaps, to keep his people safe. As CoviD-19 ravaged the country and the world he has mobilised them for lifestyle changes that defeated the virus in the state. He spared them lockdowns and the inherent disruptions to their lives and livelihoods characteristic of covid responses in other places.
“He scrupulously obeyed WHO and NCDC guidelines to provide testing to high risk individuals. He relied on pioneering use of Rapid Test Kits for the coronavirus long before they became mainstream. He responded swiftly with contact tracing and quarantines on all suspected cases”.
Onoja said that those behind the tax levy would be identified out and dealt with .
“We will not tolerate our own officials trying to profiteer off our people in any way, or even acting ill-advisedly in manners that cause them any form of distress,” he said.
He assured that any business which has met the regulatory requirements for doing business in Kogi State including payment of routine tax is entitled to operate freely, and that includes bakeries and bread traders.
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