The Abia State Government has clarified concerns that its current reforms in tax administration are tantamount to an increase in taxes payable by the citizens, saying reform is not the same as an increase.

The Commissioner for Information, Prince Okey Kanu, made the clarification in Umuahia in the company of the Special Adviser to the Governor on Internally Generated Revenue (IGR), Dr Emmanuel Okpechi.

He insisted that the ongoing reforms are aimed at improving transparency, accountability and ease of doing business, rather than increasing the tax burden on residents.

According to him, the reforms are designed to make tax administration “more transparent, traceable, auditable, automated and taxpayer-friendly, while eliminating leakages, multiple collections 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 also explained that the integration of revenue collection systems, particularly at vehicle licensing offices, was introduced to eliminate cash handling and ensure that monies paid by taxpayers are properly accounted for and remitted to government coffers.

Prince Kanu also clarified that there had been no increase in Pay-As-You-Earn (PAYE), land or vehicle taxes, stressing that the State Board of Internal Revenue does not have the power to unilaterally alter tax rates.

On the Tax Clearance Certificate (TCC), the Commissioner explained that the process was being implemented in line with existing tax laws and the new national tax framework, requiring proper assessment of taxpayers’ income rather than the previous practice of paying a flat amount without adequate assessment.

He said the government’s position was not to arbitrarily tax funds or payments into a taxpayer’s bank account, but to establish, through lawful assessment and verification, which portions constitute taxable income.

Expatiating on the issue, the Special Adviser to the Governor on IGR, Dr Emmanuel Okpechi, said the reforms were intended to promote transparency on both sides of the tax administration process.

He said taxpayers were expected to declare their income honestly, while government ensures that no citizen is taxed beyond what the law provides.

On the consolidated demand notice for businesses, Dr Okpechi explained that the initiative was designed to harmonise various charges and eliminate multiple collections by different government agencies.

“Instead of multiple people coming to harass you, you pay at one point, and you are cleared,” he said, describing the measure as an innovation aimed at improving the ease of doing business in the state.

“What we are doing is strengthening the system, making transparency work, both for the government and for the taxpayer. Nobody will be taxed a Kobo beyond what is lawful, Dr Okpechi stated.

He urged Abians to disregard misinformation concerning alleged tax increases, stressing that the reforms were intended to create a fairer, more transparent and efficient tax system.

Contributing, the Executive Chairman of the Abia State Board of Internal Revenue, Mr Uche Elekwachi, said the Board did not increase taxes but was only enforcing existing tax laws and had introduced systems to improve compliance and block revenue leakages.

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