…The stupendous increase of the tax on cattle would invariably affect the meat market and therefore the increase in not only the price and/or the quantity of meat sold but also other commodities, when the salaries of the public servants and other sources of wages of other groups remain fixed…
The Labour Party, LP gubernatorial candidate in Adamawa state, Alhaji Umar Mustapha Madawaki, a.k.a Otumba of Ekiti has reacted to the upgrading of the tax levied on cattle per head rather than herds, resulting from the one hundred billion naira the lawmakers with Adamawa State House of Assembly have a year ago approved as Agric Bond, which was projected would generate one hundred billion naira as Internally Generated Revenue, IGR.
Otumba has pointed out that the increase of the tax levied on the cattle from N200 to N5,000 is clueless, obnoxious, and summarily beyond Pharaonic in tyranny, considering the acute economic austerity the citizenry is subjected to, hence a classical IGR disaster, bearing in mind also that what is generated would be diverted to private purse as much as the loans collected without anything to show for it, remains unacceptable.
Otumba has explained that rather than improve the IGR of the state, it would destroy it, now that the cattle markets in Mubi, Ngurore in Yola and Ganye local governments are being deserted.
The lawmakers have earlier explained reasons for the approval of the N100 billion agreed Agric Bond as being based on the convincing explanation that it would aim to develope the state and create job opportunities.
* That the bond would be for the period of 4 years; N25 billion to be accessed every year
* That unlike the normal loan, the interest rate on bond is a fixed one; it does not increase.
* That part of the first N25 billion loan, which was gathered, was already accessed, would upgrade the cattle markets, boost socioeconomic activities and improve the internally generated revenue of the state.
* That N15 billion of the first N25 billion would be used in liquidating the loans earlier accessed from commercial banks.
* That N10 billion would be spent to upgrade Mubi, Ganye, Maiha, Ngurore, Song and other cattle and produce markets across the state.
* That part of the bond would be channeled to the construction of rural roads and healthcare centres among other projects.
* That the N100 billion bond would generate N100 billion IGR annually from the upgraded cattle markets.
* That Adamawa state collected only N100 as tax levied on a cattle, which generated less than N15 billion annually, while Taraba collected N100 and Lagos N10, 000 respectively on every cattle; generating about N40 billion naira annually even when Lagos only buys and sells, not rear the cattle.
The Adamawa state governor revealed that the N5000 taxed on cows in the market was not collected from cattle breeders within the state but a revenue taxed on vendors who come into the state to buy cows
Fintiri urged the citizenry to disregard blackmailers who have been conspiring to instigate them against the government that is working hard to formalize the market in order to improve their wellbeing, where he assured that the government has designed one of the best cattle markets in Mubi, saying that soon construction would start in earnest. The development, according to the governor, would be replicated in other markets located in other zones to enhance the state IGR and bring about more development to the state.
Otumba, having agreed that proper taxation is necessary in improving IGR, state government should have considered appropriate negotiable measures before hitting the tax hammer, levied mercilessly hard on the masses as vendors at the cattle and commodity markets who are for the most part, bonafide citizens of the state rather than visitors from another states that the government was putting out..
He said “the government ought to have embarked on holistic upgrading of the cattle and commodities markets first; provide the necessary modern amenities there after which the stakeholders can be invited for dialogue as much as the buyers and sellers should have been sensitised on the need to improve the taxation policy, before embarking on it. However, the government of the day seems to be in a hurry to exploit and oppress the citizenry that have since lost the confidence in governance.
“The citizenry have every reason to distrust the government due largely to deception. Look at what happened to the so-called subsidy on fertiliser, is there actually a subsidy? It is now saying that it would resuscitate the state fertilizer blending plant at the cost of over N264 million. Why now when the government is about to go for good by next year by God’s grace? The Health Insurance Scheme is another hoax, and avenue for exploitation
“The IGR disaster government at the state level led by the People’s Democratic Party isn’t of and for the people”.