Alex Otti
Abayomi Susan
The Abia State Government has dismissed reports of an increase in taxes payable by residents, clarifying that its ongoing reforms in tax administration are focused on improving transparency, accountability and ease of doing business rather than imposing additional financial burdens on taxpayers.
The State Commissioner for Information, Prince Okey Kanu, made the clarification in Umuahia while briefing journalists on the government’s tax administration reforms.
Kanu explained that the reforms were designed to make the state’s tax system more transparent, traceable, auditable, automated and taxpayer-friendly, while eliminating revenue leakages, multiple collections and arbitrary practices.
According to the commissioner, the automation of tax processes should not be misconstrued as an increase in taxation.
“Automation is not a tax increase. Transparency is not a tax increase. Closing revenue leakages is not a tax increase,” he said.
He explained that the integration of revenue collection systems, particularly at vehicle licensing offices, was introduced to reduce cash handling and ensure that payments made by taxpayers are properly captured, accounted for and remitted to the government.
Kanu also clarified that there had been no increase in Pay-As-You-Earn (PAYE) tax, land tax or vehicle-related taxes.
He stressed that the Abia State Board of Internal Revenue lacked the authority to unilaterally alter existing tax rates.
On the issuance of Tax Clearance Certificates (TCC), the commissioner said the government was implementing the process in accordance with existing tax laws and the new national tax framework.
He explained that the current process requires proper assessment of taxpayers’ income, unlike the previous practice of paying a fixed amount without adequate assessment.
Kanu further stated that the state government had no intention of arbitrarily taxing funds or payments entering taxpayers’ bank accounts.
Rather, he said, the government’s objective was to determine, through lawful assessment and verification, which portions of such funds constitute taxable income.
The commissioner reiterated the administration’s commitment to building a tax system that is transparent, efficient and fair to both taxpayers and the government.
