The Abia State Government has defended its ongoing tax administration reforms, saying they are designed to improve transparency, accountability and ease of doing business rather than increase the taxes payable by residents.
The Commissioner for Information, Okey Kanu, said the reforms would make tax administration more transparent, traceable, auditable, automated and taxpayer-friendly while eliminating revenue leakages, multiple collections and arbitrary practices.
Kanu said there had been no increase in Pay-As-You-Earn, land or vehicle taxes, stressing that the state revenue board lacked the authority to unilaterally alter tax rates. He also said automation of vehicle licensing payments was introduced to eliminate cash handling and ensure revenue was properly accounted for.
On Tax Clearance Certificates, the commissioner said the government was implementing existing tax laws and the new national tax framework, which require taxpayers’ income to be properly assessed. He stressed that the government would not automatically treat every payment or bank inflow as taxable income without lawful assessment and verification.
The Special Adviser on Internally Generated Revenue, Emmanuel Okpechi, said the reforms were intended to promote transparency between government and taxpayers. He added that the consolidated demand notice for businesses was introduced to harmonise various charges and end multiple collections by government agencies.
The Executive Chairman of the Abia State Board of Internal Revenue, Uche Elekwachi, also denied any tax increase, saying the board was enforcing existing laws while integrating payments into a single government system. He said taxpayers would be able to explain and substantiate transactions when seeking Tax Clearance Certificates.
The Chief Press Secretary to Governor Alex Otti, Ukoha Njoku Ukoha, said the clarification followed claims by opposition figures about the reforms. He said the new system had consolidated payments such as stallage and ASEPA fees, allowing taxpayers to make a single payment instead of dealing with multiple government demands.
