Enugu State’s pursuit of tax compliance has escalated with the closure of major retail hubs, including ShopRite and SPAR malls, following allegations of tax evasion.
The Enugu State Internal Revenue Service (ESIRS) initiated an enforcement campaign targeting businesses accused of failing to remit purchase tax to the government.
In a statement released on Tuesday morning, ESIRS spokesperson Nnamdi Eneh stated the persistent refusal of the affected malls and stores to comply with withholding purchase tax regulations despite multiple warning notices. The sealed establishments also include Roban Stores and Mama Onyinye restaurant, among others, cited for the same offense.
According to Eneh, the taxes in question involve purchase tax levied on goods purchased by patrons at these outlets. Perpetual Egwuonwu, Head of Department for eateries, bars, hotels, and shopping malls at ESIRS, stated the agency’s efforts to engage with the businesses to fulfill their tax obligations. However, repeated pleas and requests went unheeded, leading to the enforcement action.
Egwuonwu revealed that while some businesses, such as Roban Store, complied after discussions, ShopRite remained unresponsive despite assurances to address the issue by the end of February. This lack of cooperation prompted ESIRS to take stringent measures, including the closure of the malls until resolution.
Meanwhile, Eneh clarified that ESIRS had conducted extensive public enlightenment campaigns to educate the populace on the importance of tax compliance. Despite these efforts, many businesses continued to ignore their tax responsibilities, necessitating enforcement actions to ensure compliance.