The Abia State Government has dismissed concerns that its ongoing tax administration reforms are designed to increase the financial burden on residents, explaining that the measures are primarily aimed at improving transparency, accountability and efficiency in revenue collection.
The Commissioner for Information, Okey Kanu, gave the clarification on Monday while briefing journalists at the Government House, Umuahia, on the outcome of the State Executive Council meeting presided over by Governor Alex Otti.
Kanu explained that the reforms were introduced to make the state’s tax administration more transparent, traceable, auditable, automated and taxpayer-friendly, while addressing revenue leakages, multiple collections and arbitrary practices.
He stressed that automation should not be mistaken for an increase in taxation, noting that the government’s objective was to strengthen the system rather than impose additional financial obligations on residents.
The commissioner further disclosed that the integration of revenue collection platforms, particularly at vehicle licensing offices, was intended to eliminate cash handling and ensure that payments made by taxpayers were properly captured and remitted to the government.
According to him, there has been no increase in Pay-As-You-Earn, land or vehicle taxes. He added that the Abia State Board of Internal Revenue does not possess the authority to unilaterally change tax rates.
On the issuance of Tax Clearance Certificates, Kanu said the government was applying existing tax laws and the new national tax framework, which require taxpayers' income to be properly assessed rather than relying on the previous practice of paying a flat amount without adequate assessment.
He assured residents that the government would not automatically classify every payment or inflow into a taxpayer's bank account as taxable income. Instead, such transactions would be subjected to lawful assessment and verification to determine whether they constitute taxable income.
Also speaking, the Special Adviser to the Governor on Internally Generated Revenue, Dr Emmanuel Okpechi, said the reforms were designed to promote fairness and transparency between taxpayers and government.
Okpechi maintained that while taxpayers were expected to make honest declarations of their income, the government would ensure that no resident was made to pay beyond what the law prescribes.
He explained that the consolidated demand notice for businesses was introduced to harmonise different charges and curb the practice of multiple collections by government agencies. Under the arrangement, businesses can make the required payment through a single channel instead of dealing with multiple officials.
The Executive Chairman of the Abia State Board of Internal Revenue, Uche Elekwachi, equally maintained that the board had not increased any tax, but was enforcing existing laws while deploying technology to improve compliance and eliminate revenue leakages.
Elekwachi specifically stated that there had been no increase in PAYE, land taxes, vehicle licences or fees associated with the issuance of Tax Clearance Certificates.
He added that the government had consolidated various payments to prevent taxpayers from being subjected to repeated demands after fulfilling their obligations.
Elekwachi also clarified that not every inflow into a taxpayer's bank account would automatically be considered taxable income. He said individuals applying for Tax Clearance Certificates would be allowed to explain and substantiate the nature of their financial transactions during the assessment process.
The Chief Press Secretary to Governor Otti, Ukoha Njoku Ukoha, said the government's explanation became necessary following claims by some opposition figures regarding the state's tax reforms.
Ukoha said the new system had harmonised payments, including stallage and ASEPA fees, thereby allowing taxpayers to make their payments through a consolidated arrangement rather than dealing with multiple collection points.
The state government maintained that the reforms are intended to strengthen revenue administration, improve accountability and make the tax system more predictable and convenient for residents and businesses, while ensuring that taxpayers are not subjected to charges beyond what is authorised by law.