OGIRS bullish on revenue generation from PIT, harmonises ‘Okada’ ticketing in Ogun

Ogun State Internal Revenue Service (OGIRS) has resolved to vigorously drive revenue generation through personal income tax (PIT).

This is particularly as regards informal sector of the state economy, and effectively block financial leakages arising from tax evasion by private individuals. ‎

Also, it hopes to reduce sharp practices traceable to tax collecting unions such as motorcyclists and tricycle unions as well as arbitrary charges levied on Okada riders (motorcyclists) running into millions of naira on daily basis.

‎The definite action was taken by the OGIRS, having perceived sharp practices and cases of tax evasion by taxable individuals in connection with the PIT and daily ticketing fees levied on motorcyclists, following a state-wide protest by commercial Okada riders over sudden increment in the daily ticketing fees.

Speaking on the steps taken by OGIRS in Abeokuta on Thursday, Shehu Adebayo, consultant/special adviser to the state governor on revenue and ‎taxation, said government was currently collating particulars and profile of commercial Okada riders in a database in order to block financial leakages government suffered in the hands of dubious union leaders.

The union leaders claimed that government did not increase fees expected from the unions in charge of the operators, and it remained N300 in all the 20 local government areas of the state.

He said it was not true that the State government had increased the ticketing fees expected from the three accredited unions, the Articulated Motorcycle Riders Association of Nigeria (AMORAN), the Amalgamated Commercial Motorcycle Owners and Riders Association of Nigeria (ACOMORAN) and Tricycles Operators and Riders Association of Nigeria (TORAN) from N300 to N400 or any amount of money fixed by any union leaders.

He said: “It is not true that we have increased the ticketing fee from N300 to N400. This is what state believes is the right taxation. The state has been losing so much revenue in this sector.

“A lot of people have been getting money from this sector and keeping it to themselves.”

Adebayo said in order to block the leakages, the state government through the state Internal Revenue Service, would prepare a database that would capture all the Okada riders operating in the state, explaining that this capturing would enable the government to know the actual number of the Okada operators and bring into the tax net.

He said with the payment of ticket fees, each Okada rider would be entitled to Tax Clearance Certificate, adding: ‎”We want to create a database that will contain the names of all the Okada riders operating in the State. And yearly, they will get their Tax Clearance Certificates.”