Enugu State Government Seals ShopRite, SPAR, and Other Businesses Over Tax Issues

In a move aimed at enforcing tax compliance, the Enugu State Internal Revenue Service (ESiRS) enforcement team sealed off Enugu ShopRite and SPAR, along with several other businesses, on Tuesday morning.

The closures came after repeated warnings and failed attempts to secure purchase tax remittances from the affected establishments.

According to Egwuonwu Perpetual, Head of Department for eateries, bars, hotels, and shopping malls at ESIRS, the agency had made multiple visits to the sealed malls and businesses, urging them to fulfil their tax obligations. However, despite these efforts, the businesses remained non-compliant, prompting the enforcement action.

Perpetual highlighted the case of Roban store, which, after discussions, promptly complied with the tax requirements by remitting their purchase tax to the IRS. However, ShopRite, among others, has been resistant to the agency’s appeals, offering various excuses and failing to meet the February deadline promised for compliance.

“It is always one story or another; eventually, they promised us that before the end of February, they would do something, but we are in March, and the ESIRS have not heard from them,” Perpetual stated.

Nnamdi Eneh, spokesperson for ESiRS, emphasized that the agency had extensively engaged in public enlightenment campaigns to educate the public on the importance of tax remittance. Despite these efforts, many businesses remained unyielding, necessitating enforcement measures.

“Our public enlightenment programme has been ongoing for a while now. We have been sensitizing the people and pleading with them to pay their taxes so as not to fall victim during enforcement, but most of them remained adamant,” Eneh explained.

While acknowledging the inconvenience caused by the closures, ESiRS reiterated that the primary goal is to ensure tax compliance and not to disrupt business activities. The affected malls and businesses will remain closed until the tax remittance issues are resolved satisfactorily.