Kogi State Government through the Ministry of Commerce and Industry has appointed Musag Enterprises as consultant to levy bakers and caterers for every single loaf of bread and confectionery they produce in the state.
The Commissioner’s Permanent Secretary, Usman Ibrahim, through a memo dated November 9, addressed to the chairperson, Association of Master bakers and Caterers of Nigeria, Kogi State branch, made this known.
The collection of the levy is expected to start from November 16, 2020.
The memo read: “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.
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“Have the assurance of our esteemed regards.”
Meanwhile, the state chapter of the Association of Master bakers and Caterers of Nigeria (AMBCN) has kicked against the levy.
An executive member of the association simply identified as Godfirst said the association has begun moves to meet with the consultant the state charged with collecting the fee.
Godfirst said 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.”
He 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.
