Enugu State has taken a bold step to eliminate the problem of multiple taxation by introducing a single yearly tax payment system.
This new system, called e-ticketing, is aimed at creating a business-friendly environment in the state.
Business owners, especially those in the informal sector, can now pay their taxes once a year through this system and avoid the hassle of paying to different government agencies.
The Chairman of the Enugu State Internal Revenue Service (ESIRS), Emmanuel Ekene Nnamani, announced the development.
He said that the e-ticket system is one of the reasons why Enugu State has become a more attractive place for businesses.
“Enugu State has the most friendly tax environment, particularly for the informal sector,” Nnamani said during a recent address.
He emphasized that the e-ticketing system has simplified the tax payment process.
In the past, businesses had to pay taxes to several revenue-generating ministries, departments, and agencies (MDAs) within the state.
This system was cumbersome and made it difficult for many small businesses to thrive.
With the new e-ticketing solution, all these agencies have been brought under one platform.
Nnamani explained that this means a business owner only needs to make a single payment through the e-ticket system each year.
Once that payment is made, no other taxes will be collected from that business for the rest of the year.
“For example, in all the markets across Enugu State, you pay once a year and no one disturbs you again,” Nnamani explained.
He said this reform has helped create a better business climate in the state.
Business owners now have peace of mind knowing exactly how much they need to pay, and they are no longer bombarded with multiple tax demands.
This change has been welcomed by many traders and entrepreneurs who previously struggled to keep up with various tax obligations.
“It’s a huge relief,” said Chukwuma Obasi, a trader in Enugu’s main market.
“For years, we were paying to so many agencies, and it was affecting our businesses. Now we just pay once and we are free to focus on our work.”
The ESIRS Chairman also pointed out that the benefits of the e-ticketing system go beyond the informal sector.
He said that a similar approach has been adopted for the formal sector, making tax payments simpler for businesses of all sizes.
For formal businesses, the state has introduced what is called a Consolidated Demand Notice.
This notice combines different taxes such as the Land Use Charge and the Enugu State Waste Management Authority (ESWAMA) bills into one single demand.
Business owners can then decide whether to pay these taxes monthly, quarterly, or annually.
This flexibility allows businesses to manage their finances better while still fulfilling their tax obligations.
“We know that businesses are the backbone of the economy, and if businesses are doing well, tax generation will also improve,” Nnamani said.
He added that the goal of the reforms is not just to collect more taxes but to ensure that businesses can grow and succeed.
The unified tax system allows business owners to focus on their operations without the constant distraction of tax collectors knocking at their doors.
Nnamani believes that this will ultimately lead to a healthier economy for the state.
Tax experts have praised Enugu’s new approach, describing it as a model for other states to follow.
Many states in Nigeria continue to struggle with multiple taxation, where businesses are required to pay different fees to various agencies, leading to frustration and even avoidance of tax altogether.
Some business owners have expressed worries about how effectively the system will be managed and whether the technology will work smoothly.
There are also fears that despite the reforms, some rogue officials may still attempt to extort money from businesses.
“We need to ensure that enforcement is strict,” said Nnamani, responding to these concerns.
“We will not tolerate any officials who go against the new system and try to collect illegal taxes.”
