Kogi State Governor, Yahaya Bello has imposed a levy on every loaf of bread baked in the state in order to improve ternally generated revenue.
The levy was introduced on November 9, 2020, through a memo signed by the Commissioner’s Permanent Secretary, Usman Ibrahim, addressed to the chairperson, the Association of Master Bakers and Caterers of Nigeria (AMBCN), Kogi State branch.
The state has hired a consultant, Musag Integrated Enterprises, with Registration Number 2476494, to collect the levy from the bakers and caterers starting from November 16, 2020.
“We write to introduce the above mentioned as the Consultant appointed by the Kogi State Ministry of Commerce and Industry, to collect the above-mentioned levy from all Master Bakers and Caterers doing business in and across Kogi State.
“You are, therefore, required to avail them all necessary cooperation to enable them to carry out their assignment.
“The above-mentioned levy is to be paid per loaf of bread or other confectioneries products produced per day.
“Please do comply with this policy to improve the Internally Generated Revenue (IGR) of the State for the provision of better services and good governance.
“The collection of this levy shall take effect seven (7) days from the date of receipt of this letter. You are expected to communicate this information to all your members. Have the assurance of our esteemed regards,” the memo read.
The Kogi state chapter of the AMBCN said the association has begun moves to meet with the consultant the state charged with collecting the fee.
An executive member of the association simply identified as Godfirst confirmed they received a memo from the ministry imposing a levy to be paid “on each loaf of bread” produced.
“The letter was sent to us that a consultant has been given the job to generate fund from bakery to state government; to generate revenue to (for the) state government,” he said.
“We are trying to meet with the consultant but we have not been able to meet with him. We want to meet with him to give us more explanation.”
Godfirst said bakers in the state are experiencing hardship occasioned by the pandemic and will not be able to meet the new demand.
“We are not happy about it, presently there is no market. We are facing different types of challenges, and if they are now asking us to pay another tax, we don’t know how we can cope,” he said.