Benue State Governor, Hyacinth Alia
By TYAV SAM TYAV, Makurdi –
Benue State Governor, Hyacinth Alia has declared support for Tax Reform Bills transmitted to the National Assembly by President Bola Tinubu..
Governor Alia made this known on Wednesday while briefing newsmen in his office at the state secretariat in Makurdi, the state’s capital.
Speaking through the Finance Commissioner, Michael Oglegba, Governor Hyacinth explained that tax Laws are into four (4) different components but the areas that has raised contention from the people is the area of VAT which the Federal Government has proposed an increase of 10% from 7.5% which the governors have opposed insisting it should maintain at 7.5% in consideration of the hardship dwelling on the people in the country.
“Another Area is the Current Income Tax (CIT), which the government has proposed that it should drop to 25% but the governors insist that the status scope should be maintained.
“In the area of derivation, too the Federal Government wants to reform it which is on 60%, whatever is derived from VAT should be used within the area that is derived but the state governors stand against to maintain, these should benefit and develop the economic growth of the country.
Commenting on the full implementation of the Local Government autonomy, the governor stated that on assumption of office, he promised local government autonomy even before it was implemented by the Federal Government but it full implementation depends on the Federal Governments account.
Oglegba, who called for full Implementation of Local Governments autonomy however, lamented that the challenges delaying its full implementation are the State Universal Basic Education Board (SUBEB), Primary healthcare sectors and pensions Boards as well as primary and secondary schools which are not part of the Local Government systems and the debts owned by them and the Local Government which must be cleared to avoid sanctions from quarters whom they are owning even as the Supreme Court has passed it verdict and it should be adhered to, he emphasized.
Reacting on the debt rate of Benue State, he explained that the Benue State debt rate was currently three hundred and fifty billion naira (#350,000,000,000) as stated which Local Governments share of it is one hundred and eighty billion naira (#180,000,0000,000).
He noted that more than half of the debts were inherited, garnishing orders placed on the Local Governments accounts was a huge threat, he added.
On the Benue State 2025 budget of five hundred and fifty billion, Oglegba said that the budget has been factored on capital expenditure which carries 90% because Benue State in the previous years has being the least state in the country on capital expenditure which has to do with human capital which involves training of people on skills to enable them do things by themselves to live. This involves healthcare services, education, ICT and empowerments amongst others to enhance livelihood of citizens.
