BUSINESS & FINACE: DELTA STATE NEW TAX: GROUP TO SUE DELTA GOVERNMENT

Following the introduction of a new tax under the Passenger Welfare Scheme the Centre for the Vulnerable and Underprivileged has threatened to sue the Delta State government 

Mr. Oghenejabor Ikimi, who is the Executive Director CENTREP issued the threat on Wednesday, alleging that the new tax would be paid by commuters patronising public transport, Delta State's lines across the state.“I have perused the applicable laws on taxation and find that there is no

provision for the collection of taxes or levies on account of passenger welfare or from motorcycle and tricycle operators by the state government under Part II of the Schedule to the Taxes and Levies (Approved List for Collection) Act, 2004 (as amended), which prescribes the taxes and levies to be collected by the state government.

“Furthermore, Section 2(1) of the same amended Act specifically prohibits the assessment or collection of taxes or levies on behalf of the government by persons other than the appropriate tax authority which was defined in Section 4 to be (in respect of a state), the State Board of Internal Revenue, government department or any other government body charged with

responsibility for assessing and collecting the particular tax.” He said.

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