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The Abia State Government has denied an increment in taxes payable by citizens, saying the ongoing reforms in tax administration in the state are aimed at improving transparency, accountability, and ease of doing business, rather than increasing the tax burden on residents.
Commissioner for Information Prince Okey Kanu made this known in Umuahia while briefing newsmen.
Prince Okey explained that the reforms were 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.
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He informed 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 were properly accounted for and remitted to the government.
Prince Kanu equally clarified that there had been no increase in Pay-As-You-Earn (PAYE) tax, 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.
