The Abia State Government has clarified that its ongoing reforms in tax administration are not aimed at increasing taxes payable by residents, but at improving transparency, accountability and ease of doing business.
The Commissioner for Information, Prince Okey Kanu, made this known on Monday during a briefing at the Government House, Umuahia, on the outcome of the State Executive Council meeting presided over by Governor Alex Otti.
Kanu said the reforms were designed to make tax administration more transparent, traceable, auditable, automated and taxpayer-friendly, while eliminating revenue leakages, multiple collections and arbitrary practices.
He stressed that automation and improved revenue collection systems should not be mistaken for tax increases.
The Commissioner 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 accounted for and remitted to government.
He also clarified that there had been no increase in PAYE, land or vehicle taxes, noting that the Abia State Board of Internal Revenue lacked the authority to unilaterally alter tax rates.
On the issuance of Tax Clearance Certificates, TCC, Kanu said the process was being implemented in line with existing tax laws and the new national tax framework.
He explained that taxpayers would be assessed based on their actual taxable income rather than being subjected to arbitrary flat-rate payments.
Also speaking, the Special Adviser to the Governor on Internally Generated Revenue, Dr. Emmanuel Okpechi, said the reforms were intended to promote transparency for both government and taxpayers.
Okpechi urged residents to declare their income accurately, assuring that no taxpayer would be required to pay beyond what is prescribed by law.
He also explained that the consolidated demand notice for businesses was introduced to harmonise government charges and eliminate multiple collections by different agencies.
According to him, businesses would be able to make their required payments through a unified system instead of dealing with multiple collectors.
The Executive Chairman of the Abia State Board of Internal Revenue, Uche Elekwachi, further maintained that the board had not increased any tax rates, but was enforcing existing laws and introducing systems to improve compliance and block revenue leakages.
Elekwachi reiterated that tax rates could only be changed through legislation and could not be unilaterally increased by the revenue board.
He also clarified that money entering a taxpayer’s bank account would not automatically be treated as taxable income, stressing that taxpayers would have an opportunity to explain and substantiate transactions during the assessment process where necessary.
The Chief Press Secretary to the Governor, Ukoha Njoku Ukoha, said the clarification became necessary following recent claims by some opposition figures alleging that the state government had increased taxes.
He said the new system was designed to consolidate various government payments, allowing taxpayers to make their payments through a more coordinated process.
The State Director of Information, Lady Chika Orji-Nwoke, was also present at the briefing.
The government urged Abians to disregard misinformation about alleged tax increases, insisting that the reforms are focused on building a fairer, more transparent and efficient revenue system in the state.
