Imo State is set for a surge in internally generated revenue (IGR) following the reduction of the Right of Way (ROW) tariff of telecommunication companies from N4,500 to N145 by Governor Hope Uzodimma.
Already, Board of Internal Revenue (BIR) has activated its machinery to recover its arrears of tariff payments from the companies to the state government, said to be in billions of naira.
Governor Uzodinma, who signed an Executive Order yesterday on ROW, drastically reduced tariff payments of the companies from N4,500 to N145 and explained that he was doing so to spur the companies to invest more in the state.
Commissioner for Information and Strategy, Declan Emelumba, in a statement yesterday, said the BIR is already moving to take advantage of the gesture of tariff reductions and collect the arrears of payable tariffs from the companies at the old tariff rate of N4,500.
He said the reduction does not affect arrears of tariffs payable to the government, explaining that when worked out, it could come to billions of naira.
The commissioner regretted that the telecommunication companies in the state have never paid tax due on ROW and hoped that with the reduction, the companies will be encouraged to liquidate the outstanding arrears.