…Describes exercise as automation, not tax increase

The Abia State Government has stated that  the ongoing automation of Tax administration in the state  implies consolidation of all Taxes payable by the taxable residents into one, and not a ploy to increase taxes as being insinuated or misinterpreted in some quarters.

The Commissioner for Information, Prince Okey Kanu who announced this to journalists yesterday after the  Monday weekly State Executive Council (SEC) meeting explained  that the ongoing reforms in the state’s tax administration are aimed at improving transparency, accountability and ease of doing business, rather than increasing the tax burden on residents.

He said “the reforms are designed to make tax administration more transparent, traceable, auditable, automated and taxpayer-friendly, while eliminating leakages, multiple collections and arbitrary practices.

According to Commissioner Kanu “Automation is not a tax increase. Transparency is not a tax increase. Closing revenue leakages is not a tax increase. 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 the government”.

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

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

The government’s position on Tax, Kanu maintained, 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 one’s taxable income.

Speaking on the matter, the new Executive Chairman of the State Board of Internal Revenue ( BIR ) from June 2026, Mr. Uche Elekwachi,  informed that the Board  still has no power to increase taxes but  enforcing existing tax laws, adding that it is in this accordance that it   innovated systems that would improve compliance and block revenue leakages.

According to the BIR Chairman, tax rates cannot   be changed/reviewed  without  legislation, hence “there is no increment whatsoever on PAYE, on lands,  on vehicle licenses or on the issuance of Tax Clearance Certificates,TCC.

“What the government has done is  just to consolidate these payments so that once one pays , nobody comes to one with any other demand notice”.

Elekwachi also reacted to the  claim in some quarters that BIR has the statutory power to access Taxpayers Bank Records while assessing the Taxpayers’ payable Tax.

He clarified that  the Board would not automatically treat every inflow into a taxpayer’s bank account as taxable income, stating that Taxpayers would have the opportunity to explain and substantiate the nature of such transactions during the assessment process especially  for those demanding  Tax Clearance Certificate (TCC).

While reacting to questions, the Special Adviser to the Governor on Internally Generated Revenue (IGR), Dr. Emmanuel Okpechi, asserted that the ongoing Tax reforms involving automation were intentional to promote transparency on tax administration and payment

“Taxpayers are expected to declare  their income honestly, while the government ensures that no citizen should be  taxed beyond what the law provides.

He explained that the Consolidated Tax  initiative was designed to harmonise various charges and eliminate multiple collections by different government agencies such that “Instead of multiple people coming to harass taxpayers, they (taxpayers)  pay at one point and  become cleared .

“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,  urging  Abians to  therefore disregard misinformation concerning alleged tax increases, believing  that the tax reforms were intended to create a fairer, more transparent and efficient tax system.