The main reason for raising fund in the state is to meet government expenditure. Other reasons for revenue generation in Ebonyi State include the following:
(i)        To provide free social services such as health and education especially as a growing (young) state
(ii)       Equitable distribution of Amenities. Revenue generated in this state can assist in the provision of vital amenities as good roads, Hospital etc.

(iii)     The state government needs revenue to finance capital projects such as electrifications of rural areas, industrial base and agricultural has establishment.
(iv)      Management of the economy: there is also need to generate revenue to ensure that the economy is effectively managed. It encourages economic diversification.
(v)       To ensure and integrated rural development and balanced economic growth and development of the state to various local authorities for collection of taxes and rent unfortunately, the available staff of the state Board of internal Revenue (BIR) is not enough to cover the small area of the state capital let alone the various local government, development center and villages.
(iii)     The Guardian (2007) reported that the proposed national tax policy is likely to be to the advantage of foreign economies rather than the local economy in its present shape, thus the policy is most likely to constrict domestic output rather than spawn additional investments it will not create new jobs, smuggling will rise.
(iv)      Lack of trained, effective and motivated personnel. Tax administration in Ebonyi State is poor due to lack of trained effective and motivated personnel the machinery for tax or rate collection is grossly inadequate and inefficient.
(v)       Leakages of Revenue: Most of the revenue so collected are not properly tracked, due to lack of transparency, bribery and corruption on the side of tax and rate collectors and the payers, example duplication of book 6A by revenue collectors, non- submission of returns by agencies, ministries and parastatals.
(vi)      Lack of adequate motivation and working facilities: This is another factor militating against revenue generation in Ebonyi
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