The Chairman of Enugu State Internal Revenue Service (ESIRS), Mr Emmanuel Nnamani, says that 99 per cent of the informal sector in the state does not remit taxes to government coffers.
Nnamani disclosed this during a Media briefing on Thursday in Enugu while reacting to reports on social media that the state government-imposed taxes outside the law.
He denounced the allegation of imposition of arbitrary levies, stating that taxes and revenues in Enugu State remained within the limits of the law.
He described circulating reports on social media regarding the state’s tax regime as ‘false and misleading’, clarifying the government’s tax policies, its commitment to legality and transparency.
The chairman explained that tax administration in the state was guided primarily by the Personal Income Tax Act (as amended).
This, he said, empowered the ESIRS to collect personal income tax through two principal means: Pay-As-You-Earn (PAYE) for individuals in formal employment, and Direct Assessment for those outside the formal sector.
He added that compliance was generally seamless among those in formal employment.
The chairman admitted that enforcement mechanisms, including legal action, were sometimes necessary to ensure compliance from others.
“One of the most critical challenges has been transitioning the informal sector, particularly market traders and transport operators, into the formal tax net.
“Upon assumption of office, it was discovered that 99 per cent of informal sector players were not remitting taxes to the state, largely due to the interference of non-state actors who collected revenues informally.
“The state introduced a consolidated N36,000 annual levy for market traders. This fee covers various charges, including environmental sanitation (ESWAMA), Signage fee, Local Government tollage, and Business Premises levies.
“Once this amount is paid between January and March, the trader owes nothing else for that year, but after March 31st, defaulters become subject to enforcement action,” Nnamani said.
He added that Street-based vendors, who operated outside the formal market structures, were expected to pay N30,000 annually, with ESWAMA charges handled separately.
“Transport operators like Okada riders, Keke drivers, minibuses, tankers, and trucks operate under a daily ticketing system.”
Nnamani further said that Enugu’s tax regime was not an outlier, but consistent with federal laws implemented across all states.
“We’re not here to compete with other states. Our duty is to apply the law fairly and ensure that our people prosper,” he said.
“We’re not here to compete with other states. Our duty is to apply the law fairly and ensure that our people prosper,” he said.
In June, President Bola Tinubu signed into law four tax reform bills on key areas of Nigeria’s fiscal and revenue framework.
One of the four bills is the Nigeria Tax Bill (Ease of Doing Business), which aims to consolidate Nigeria’s fragmented tax laws into a harmonised statute.
Earlier, the Chairman of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Dr. M.B. Shehu, called for the integration of Nigeria’s informal sector as relevant authorities move to broaden the nation’s tax base.