The Port Harcourt City Chamber of Commerce, Industry, Mines, and Agriculture (PHCCIMA) has conducted a review of the Rivers State 2025 budget, identifying potential untapped revenue sources that could significantly bolster the state's finances.
A think-tank established by PHCCIMA has highlighted the possibility of generating an additional N500 billion in revenue for the state. This includes:
- Uncovering under-reported or unreported taxes: The report emphasizes the potential to increase revenue by identifying and addressing instances of underpaid taxes by corporations.
- Addressing tax evasion: The report points out that significant revenue is likely lost due to individuals and companies operating in sectors like oil rigs and dredging sites without remitting appropriate taxes.
- Expanding tax collection efforts: PHCCIMA recommends expanding tax collection drives in areas like Lagos and Abuja, where many Rivers State residents reside.
Furthermore, the chamber believes the state can unlock over N500 billion in trapped or recovered assets.
PHCCIMA President, Dr. Chinyere Nwoga, lauded the state government's efforts to increase internally generated revenue (IGR) from N10 billion to N27 billion per month. However, the chamber also made several recommendations to further enhance the state's fiscal position:
- Re-enacting the Rivers State Statutory Savings Account: While supporting this initiative, PHCCIMA stressed the importance of safeguarding the value of these assets.
- Eradicating social taxes on the poor: The chamber urged the government to eliminate burdensome taxes on low-income residents.
- Investing in human capital: PHCCIMA recommended a revised salary structure to motivate government employees and prioritize the recruitment of skilled professionals.
Budget Analysis:
- Impact of inflation and currency devaluation: PHCCIMA highlighted the significant impact of inflation and naira devaluation on the budget's real value.
- Focus on capital expenditure: The chamber commended the government's allocation of N678 billion to capital expenditure, emphasizing the importance of investing in long-term assets.
- Youth and women empowerment: PHCCIMA supported the allocation of funds for agriculture and youth empowerment programs but stressed the need for a robust database and targeted interventions.
- Exploring alternative funding sources: The chamber suggested exploring multilateral funding and creating an investor guarantee program to attract private investment.
- Addressing challenges in key sectors: PHCCIMA recommended strategies to improve revenue generation in sectors like healthcare and electricity.
Key Takeaways:
- The Rivers State 2025 budget presents significant opportunities for revenue enhancement.
- Addressing tax evasion and expanding tax collection efforts are crucial for increasing IGR.
- Investing in human capital and focusing on long-term assets are vital for sustainable economic growth.
- The chamber emphasized the importance of sound financial management and prudent fiscal policies in navigating the current economic challenges.
0 Comments