The Abia State Government has clarified that its ongoing tax administration reforms are not designed to increase the tax burden on residents, but to enhance transparency, accountability, and the ease of doing business.
The Commissioner for Information, Okey Kanu, made the clarification on Monday while briefing journalists at the Government House, Umuahia, on the outcome of the State Executive Council meeting chaired by Governor Alex Otti.
Kanu explained that the reforms aim to make tax administration “more transparent, traceable, auditable, automated and taxpayer-friendly,” while eliminating revenue 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,” he stated.
He emphasised that there has been no increase in Pay-As-You-Earn (PAYE), land taxes, or vehicle taxes, noting that the Abia State Board of Internal Revenue lacks the authority to unilaterally alter tax rates.
On the Tax Clearance Certificate process, Kanu said it is being implemented in accordance with existing tax laws and the new national tax framework, which require proper assessment of taxpayers’ income rather than the previous practice of paying a flat amount without adequate verification.
The Special Adviser to the Governor on Internally Generated Revenue, Dr Emmanuel Okpechi, added that the reforms promote transparency for both government and taxpayers. He noted that the consolidated demand notice for businesses was introduced to harmonise various charges and end multiple collections by different agencies.
“Instead of multiple people coming to harass you, you pay at one point and you are cleared,” Okpechi said. “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.”
The Executive Chairman of the Abia State Board of Internal Revenue, Uche Elekwachi, reaffirmed that the Board has not increased any taxes. “There is no increment whatsoever. No increment on PAYE, no increment on lands, no increment on vehicle licences or for the issuance of Tax Clearance Certificates,” he said.
Elekwachi explained that the government has consolidated various payments so that once a taxpayer pays, no further demand notices are issued. He also clarified that the Board would not automatically treat every inflow into a taxpayer’s bank account as taxable income, and that taxpayers would have the opportunity to explain and substantiate their transactions during assessment.
The Chief Press Secretary to the Governor, Ukoha Njoku Ukoha, said the clarification was necessary in response to claims by some opposition figures regarding the state’s tax reforms. He noted that the new system has harmonised payments, including stallage and ASEPA fees.
The Abia State Government maintains that the automation and integration of revenue systems are aimed at eliminating cash handling, ensuring proper accountability of payments, and creating a more efficient and fair tax administration framework for residents and businesses.