“No Tax Increase In Abia”, Govt Says, As Reforms Target Leakages, Multiple Collections

The Abia State Government has clarified that 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 clarification was made on Monday at Government House, Umuahia, by the Commissioner for Information, Prince Okey Kanu, during a briefing on the outcome of this week’s State Executive Council meeting presided over by Governor Alex Otti.

Prince Kanu said the reforms are designed to make tax collection “more transparent, traceable, auditable, automated and taxpayer-friendly” while eliminating leakages, multiple billing and arbitrary practices.

“Automation is not a tax increase. Transparency is not a tax increase. Closing revenue leakages is not a tax increase,” the Commissioner stated.

He explained that the integration of revenue collection systems, especially at vehicle licensing offices, was introduced to end cash handling and ensure that payments by taxpayers are properly accounted for and remitted to government.

Kanu also stressed that there has been no increase in Pay-As-You-Earn, PAYE, land tax, or vehicle taxes. He added that the Abia State Board of Internal Revenue does not have the power to unilaterally alter tax rates.

On the Tax Clearance Certificate, TCC, the Commissioner said the process is now being implemented in line with existing tax laws and the new national tax framework.

This, he said, requires proper assessment of a taxpayer’s income instead of the previous practice of paying a flat rate without adequate verification.

“Government’s position is not to arbitrarily tax funds or payments into a taxpayer’s bank account, but to establish through lawful assessment which portions constitute taxable income,” Kanu explained.

The Special Adviser to the Governor on Internally Generated Revenue, Dr. Emmanuel Okpechi, said the reforms promote transparency for both government and taxpayers.

He said the new consolidated demand notice for businesses was introduced to harmonize various charges and stop multiple collections by different agencies.

“Instead of multiple people coming to harass you, you pay at one point and you are cleared,” Dr. Okpechi said.

“What we are doing is strengthening the system. Nobody will be taxed a kobo beyond what is lawful.”

He urged Abians to disregard claims of tax increases, describing the reforms as a move toward a fairer and more efficient tax system.

The Executive Chairman of the Abia State Board of Internal Revenue, Mr. Uche Elekwachi, also said the Board did not increase any tax rate.

“There is no increment whatsoever. No increment on PAYE, no increment on lands, no increment on vehicle licenses or for the issuance of TCC,” Elekwachi said.

“What government did was to consolidate these payments so that once you pay, nobody comes to you with any other demand notice.”

He added that the Board would not automatically treat every inflow into a taxpayer’s bank account as taxable income. Taxpayers seeking a TCC will be given the opportunity to explain and substantiate transactions during assessment.

The Chief Press Secretary to the Governor, Ctz. Ukoha Njoku Ukoha, said the clarification became necessary following statements by some opposition figures.

He noted that the new tax law has harmonized all payments, including stallage, ASEPA fees and other levies, into a single payment point.

“Once one pays, he has paid everything,” Ukoha said.