The Abia State Government has clarified that its ongoing tax administration reforms are not intended to increase the tax burden on residents and businesses, but to improve transparency, accountability and ease of doing business.

The Commissioner for Information, Okey Kanu, stated this on Monday while briefing journalists at Government House, Umuahia, on the outcome of the State Executive Council meeting presided over by Governor Alex Otti.

Kanu said the reforms were designed to make the tax system 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 said.

The commissioner explained that the integration of revenue collection systems, particularly at vehicle licensing offices, was aimed at eliminating cash handling and ensuring that payments made by taxpayers were properly documented and remitted to government coffers.

He also said there had been no increase in Pay-As-You-Earn, land or vehicle taxes, stressing that the Abia State Board of Internal Revenue did not have the authority to unilaterally alter tax rates.

On the issuance of Tax Clearance Certificates, Kanu said the process was being implemented in accordance with existing tax laws and the new national tax framework.

He explained that taxpayers would be assessed based on their actual income rather than the previous practice of paying a flat amount without proper assessment.

According to him, the government would not arbitrarily classify every payment or inflow into a taxpayer’s bank account as taxable income. Instead, lawful assessment and verification would be used to determine which transactions constituted taxable income.

Also speaking, the Special Adviser to the Governor on Internally Generated Revenue, Dr Emmanuel Okpechi, said the reforms were designed to promote transparency between taxpayers and government.

He said taxpayers were expected to honestly declare their income, while the government would ensure that no individual or business was taxed beyond what the law permits.

Addressing the consolidated demand notice for businesses, Okpechi explained that the initiative was introduced to harmonise various government charges and eliminate multiple collections.

“Instead of multiple people coming to harass you, you pay at one point and you are cleared,” he said.

He added that the government was focused on strengthening the tax administration system while ensuring that taxpayers were charged only what was legally required.

The Executive Chairman of the Abia State Board of Internal Revenue, Uche Elekwachi, also maintained that the board had not increased taxes but was enforcing existing tax laws and introducing measures to improve compliance and block revenue leakages.

“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, TCC,” Elekwachi said.

He explained that various payments had been consolidated so taxpayers would not continue receiving multiple demand notices after making the required payments.

According to him, the changes represented an integration of existing payments into a centralised government system rather than an increase in taxes.

Elekwachi further clarified that the board would not automatically regard every inflow into a taxpayer’s bank account as taxable income.

He said individuals applying for Tax Clearance Certificates would have an opportunity to explain and provide evidence concerning the nature of transactions identified during the assessment process.

The Chief Press Secretary to the governor, Ukoha Njoku Ukoha, said the clarification followed concerns raised by some opposition figures over the state’s tax reforms.

He explained that the new system had also harmonised various payments, including stallage and fees payable to the Abia State Environmental Protection Agency.

According to him, the objective was to allow taxpayers to make consolidated payments at a single point rather than dealing with multiple collection points.