Bayelsa uses N150m to collect N570m IGR in August, Gov. Dickson Aide says Amount Okay

Posted by African Examiner Featured, Latest Headlines, Press Releases Friday, October 4th, 2013

The African Examiner,

The Bayelsa State Government has been explaining the rationale behind the provision of a N150 million as cost of collection of Internally Generated Revenue (IGR) in the State.

Speaking to newsmen in Yenagoa, the Special Adviser to the Governor on Treasury, Accounts and Revenue, Mr. Timipre Seipulou stated that, the amount in question is purely in conformity with the Personal Income Tax Act (PITA) 2011, which requires Governments at all levels to pay not less than 5% as cost of collection to the relevant Boards of Internal Revenue.

According to him, it was based on this Act that, the Bayelsa state Government fixed its own cost of collection at 6%, exclusive of revenues computed from the Pay As You Earn (PAYE) collections from Government workers and political office holders.

He further explained that, as part of the administration’s commitment to properly manage the scarce resources of the State, Government has successfully achieved a downward review of the cost of collection payable to the platform providers from 4% to 2.5%.

According to him “As part our commitment to properly manage the scarce resources of the State, Government has successfully achieved a downward review of the cost of collection payable to the platform providers from 4% to 2.5%.

“As it’s the practice, the cost of collection is used by the Board of Internal Revenue to meet its expenditure requirements, which enables it to carry out its Revenue Generation obligations to the State, since the board does not receive any monthly overheads form Government. It must however be noted that, the boards expenditure on the funds so provided for its IGR duties are supervised by the Tax Assessment and Review Committee (TARC)”

Mr. Seipulou noted that, before the present administration’s assumption of office in February 2012, the cost of collection was 10% for the board and 4% for the platform providers, inclusive of revenues collected from PAYE for Government workers, stressing that, despite the high percentages used by our predecessors in Government, the State’s IGR stood at an abysmal N50m to N60m at the very best.

Speaking further, he said “We wish to inform Bayelsans that, before the present administration’s assumption of office in February 2012, the cost of collection was 10% for the board and 4% for the platform providers. This included revenues collected from PAYE for Government workers and despite the high percentages used by our predecessors in Government, the State’s IGR stood at an abysmal N50 to N60m at the very best.

“For the month of August 2013, the actual cost that is being processed on collections of N570.34 million is well below N50 million and it is undergoing reviews for approval.

“It is therefore, heartwarming to note that, the Restoration administration saves over N42 Million on the cost of collection arising from State PAYE plus 5.5% of all revenues collected through the payment platform when compared to the previous administration.”

He said Government was taking the pains to properly inform the people because, it is their right to ask questions and as a responsible Government, it owes them a duty to explain, which is exactly what is being done in this case”

The Special Adviser also using the occasion to urge all well meaning Bayelsans to remain steadfast in the ability of the present administration to keep to its promise of delivering the dividends of democracy.

“Government has taken the pains to properly inform the people because, it is their right to ask questions and as a responsible Government, we owe you a duty to explain, which is exactly what we have done in this case. Government is also using this opportunity to urge ll well meaning Bayelsans to remain steadfast in the ability of this administration to keep to its promises of delivering the dividends of democracy,” he said

Daniel Iworiso-Markson

Chief Press Secretary to the Governor of Bayelsa State