Governor Rochas Okorocha asked all taxable adults to pay N3,000 as development levy in Imo state

Governor Rochas Okorocha of Imo state, in a surprise move, has directed all taxable adults in the 27 local councils of the state to pay N3,000 as development levy.

Punch reports that the governor gave the directive at the weekend while inaugurating the state’s Development Council. He went on to urge Imo people to be ready to pay for their benefits while mandating every taxable adult in the state to register and see this as a way of facing current challenges.

Contrary to what many people think, experts actually believe it is a smart move for governments to temporarily increase or add new taxes during recession, as long as they revert back after the crisis. For individuals however, the smart move is to cut down on spending.

Herein lies the problem of an individual trying to cut down on spending being asked to pay an additional levy. This could be a real source of dissonance especially in Nigeria where misappropriation of funds in public coffers by public office holders is the order of the day.

Nigeria, by its nature, presents its own unique fears and challenges. First is the fear, and validly so, that new or increased taxes, once levied, would never be reverted even if the country comes out of recession.

Secondly is the fact that a citizen trying to manage his micro-economics in the face of sky-rocketing prices of goods like staple foods (rice, beans garri) and clothes, increasing costs for services such as school fees and others, inflation, all without a commensurate increase in salary and income, taxing him with an additional levy might just be tantamount to setting a candle underneath a keg of gunpowder.

Lastly and most importantly is the acute distrust of the citizens for public office holders, of which Governor Rochas has not been spared. When the people believe that the development levy being collected will only be used to fund the extravagant lifestyle of public office holders instead of actually funding developmental projects, it just might not work.

Thus while it sounds like a wise move, the Imo state government should ensure it has a plan on how to judiciously and effectively inject the money into life-changing projects as well as be transparent enough to let the taxed people in on the plan.

Otherwise, the governor might just be doing himself and the state more harm than good.