Subscribe: Gist E-Paper
The Abia State Government has dismissed claims that its ongoing tax reforms amount to an increase in taxes, insisting that the exercise is aimed at improving transparency, accountability and efficiency in revenue collection.
Commissioner for Information, Prince Okey Kanu, stated this while briefing journalists on the outcome of the State Executive Council meeting presided over by Governor Alex Otti at Government House, Umuahia.
Kanu explained that the reforms were designed to make the state's tax administration more transparent, traceable, auditable, automated and taxpayer-friendly, while eliminating revenue leakages, multiple taxation and arbitrary collections.
He stressed that automation of the tax system should not be mistaken for an increase in taxes.
"Automation is not a tax increase. Transparency is not a tax increase. Closing revenue leakages is not a tax increase," he said.
The commissioner said the integration of revenue collection platforms, particularly at vehicle licensing offices, was introduced to eliminate cash transactions and ensure that all payments made by taxpayers are properly accounted for and remitted to government.
He maintained that there had been no increase in Pay-As-You-Earn (PAYE), land taxes or vehicle licensing fees, noting that the Abia State Board of Internal Revenue lacked the authority to alter tax rates without legislative approval.
On the issuance of Tax Clearance Certificates (TCCs), Kanu explained that the process now complies with existing tax laws and the new national tax framework, requiring proper assessment of taxpayers' income instead of the previous flat-rate system.
According to him, the government would not arbitrarily tax every inflow into a taxpayer's bank account but would determine taxable income through lawful assessment and verification.
Also speaking, the Special Adviser to the Governor on Internally Generated Revenue, Dr. Emmanuel Okpechi, said the reforms were intended to ensure fairness and transparency for both taxpayers and the government.
He explained that the newly introduced consolidated demand notice for businesses harmonises different government levies into a single payment, thereby eliminating multiple collections by various agencies.
"Instead of multiple people coming to harass you, you pay at one point and you are cleared," Okpechi said, adding that no taxpayer would be made to pay beyond what is prescribed by law.
The Executive Chairman of the Abia State Board of Internal Revenue, Mr. Uche Elekwachi, also denied reports of tax increases, insisting that the Board was only enforcing existing tax laws and strengthening compliance through technology.
He reiterated that there had been no increase in PAYE, land taxes, vehicle licence fees or charges for obtaining Tax Clearance Certificates.
Elekwachi added that tax rates could only be amended through legislation and not by the revenue board.
He further clarified that not all deposits into taxpayers' bank accounts would be regarded as taxable income, as taxpayers would be given the opportunity to explain the nature of transactions during the assessment process.
The Chief Press Secretary to the Governor, Ukoha Njoku Ukoha, said the government's clarification became necessary following claims by opposition figures alleging tax increases in the state.
According to him, the reforms merely harmonised various payments, including stallage and ASEPA fees, into a single payment system to make tax administration easier for residents and businesses.
The government urged residents to disregard what it described as misleading information about tax increases, assuring that the reforms are intended to create a fair, transparent and efficient tax administration system in the state.
