Automation is not tax hike, Abia govt defends reforms

Abia State, Nigeria, is undertaking significant tax administration reforms, which the government insists are designed to enhance transparency and efficiency rather than impose new financial burdens on residents. Okey Kanu, the State Commissioner for Information, briefed journalists on August 18, emphasizing that the ongoing changes are geared towards making the system "more transparent, traceable, auditable, automated and taxpayer-friendly."

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Automation is not a tax increase. Transparency is not a tax increase. Closing revenue leakages is not a tax increase.

Kanu stated that the reforms aim to close revenue leakages, eradicate multiple collection points, and put an end to arbitrary practices within the tax system. He specifically addressed concerns about automation and transparency, asserting, "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, is intended to eliminate cash handling and ensure all payments are properly accounted for and remitted to the government.

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

The government has also clarified that there have been no increases in existing tax categories such as Pay-As-You-Earn, land, or vehicle taxes. The Abia State Board of Internal Revenue, it was noted, does not possess the authority to unilaterally change tax rates. Regarding Tax Clearance Certificates, the process now aligns with existing tax laws and the new national framework, requiring proper assessment of taxpayers' income instead of relying on flat-rate payments. Special Adviser on Internally Generated Revenue, Dr. Emmanuel Okpechi, added that the reforms promote honesty from taxpayers and ensure the government levies taxes strictly within legal limits. The consolidated demand notice for businesses is another initiative to streamline charges and prevent harassment from multiple government agencies.

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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.