Akwa Ibom State Economy To Record Significant Growth As Governor Emmanuel Grants Tax Waiver
By Trek Africa Newspaper
Gov. Udom Emmanuel, Governor of Akwa Ibom State
In times like this when business owners, the unemployed, low income earners and other individuals are struggling to breathe with the aid of their mouths instead of the nose as a result of the economic impact of COVID-19, responsible leaders who have the interest of the people at heart are offering tax reductions, waivers and deadline delays for certain tax payments and compliance obligations.
This generally gives tax payers, especially those who are most vulnerable and economically disadvantaged, some very welcome breathing room to preserve their cash flow and take additional time to organize their tax affairs in these trying times.
From Europe to America, Asia to Africa and other continents of the world, governments are implementing economic and tax relief packages to help businesses and workers mitigate the impact of COVID-19 on the economy of their nations.
In Spain, Australia, Sweden and other climes, Small and Medium Scale Enterprises (SMEs) and self-employed people are allowed to defer income, corporate and VAT tax obligations for six months. This is an emergency tax measure to help those businesses grow during this hard time.
In Akwa Ibom State, Gov. Udom Emmanuel, who has vast knowledge in the running and sustainability of Small and Large Scale Enterprises, both in good and bad economic weather has on the recommendation of the Akwa Ibom State Post COVID-19 Economic Reconstruction Committee exempted SMEs from the payment of business premises levy as part of the tax relief scheme he recently approved. The government has also waived the economic development levy for SMEs.
The decision was also in line with the World Bank requirements for giving out grants and support to state governments.
This tax relief measure is well received by Small Scale Enterpreneurs and other good spirited individuals in the state.
However, there are people who think that the waiver by the state government is not in the best interest of the people. According to them, cutting taxes and granting unnecessary tax reliefs are too insignificant to trigger any meaningful economic growth or help struggling SMEs. But this is very funny. It shows their level of understanding of elementary economics. According to them, this is the time to increase taxes to raise money to run the state. How come they are this loaded in financial management and economic policies?
Quite preposterous is the fact that these are people who have never engaged in any business before, not even retail business, hence their ignorance of the benefits of tax waivers.
If this is not a global best practice at a time like this, countries like the US, England, Germany, Kenya and others wouldn’t have adopted it, and the World Bank would not have advised states to engage in it in the first place.
It is not compulsory that people must comment on all government policies and programmes, especially where one is confused. Courtesy demands that one should ask questions where they are in doubt, instead of making mockery of one’s academic certificate and family name.
The Akwa Ibom State Post COVID-19 Economic Reconstruction Committee inaugurated by Gov. Emmanuel is made up of highly sought-after and renowned economists, captains of industries, successful managers of corporate organizations, professionals and business gurus with years of experience decorated with record breaking pedigrees. And it is sheer foolishness for someone who couldn’t even have a ‘D’ in elementary economics to condemn an economic life- saving policy of this administration.
When Gov. Ben Ayade of Cross River State gave such waiver to SMEs, petty traders, commercial drivers and others, these “I too know individuals” were among those who clapped and hailed Ayade. Now that such humane disposition is extended to our people as a relief to the biting effect of the coronavirus pandemic on the people, they said it shouldn’t be so. What a display of witchcraft?
Even Satan is scared of some human beings, especially those who have been baptised by the opposition party in the pool of confusion. In their low level of understanding, they felt that petty traders should be taxed to save the economy from collapse. What a foolish and anti-people suggestion?
By Richard Peters
