Steve Unegbu, Umuahia
The Abia State Government says the ongoing reforms in tax administration in the state do not translate to increment in taxes payable by the citizens.
The Commissioner for Information, Prince Okey Kanu stated this on Monday, August 17, 2026 at Government House umuahia, while briefing newsmen on the outcome of this week’s State Executive Council meeting presided over by Governor Alex Otti.
Prince Okey 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.
According to him, the reforms are 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.
The Commissioner explained 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 are properly accounted for and remitted to government.
Prince Kanu also clarified that there had been no increase in Pay-As-You-Earn (PAYE), 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.
Responding to questions, the Special Adviser to the Governor on Internally Generated Revenue (IGR), Dr. Emmanuel Okpechi, said the reforms were intended to promote transparency on both sides of the tax administration process.
He said taxpayers were expected to declare their income honestly, while government ensures that no citizen was taxed beyond what the law provides.
On the consolidated demand notice for businesses, Dr. Okpechi explained that the initiative was designed to harmonise various charges and eliminate multiple collections by different government agencies.
“Instead of multiple people coming to harass you, you pay at one point and you are cleared,” he said, describing the measure as an innovation aimed at improving the ease of doing business in the state.
“What we are doing is strengthening the system, making transparency work, both for the government and for the tax payer. Nobody will be taxed a Kobo beyond what is lawful, Dr. Okpechi stated.
He urged Abians to disregard misinformation concerning alleged tax increases, stressing that the reforms were intended to create a fairer, more transparent and efficient tax system.
Contributing, the Executive Chairman of the Abia State Board of Internal Revenue, Mr. Uche Elekwachi, said the Board did not increase taxes but was only enforcing existing tax laws and had introduced systems to improve compliance and block revenue leakages.
He explained that tax rates could only be changed through legislation, adding that the Board had no authority to unilaterally increase them.
“There is no increment whatsoever. No increment on PAYE, no increment on lands, no increment on vehicle licenses or for the issuance of Tax Clearance Certificates,TCC.
“So, what the government has done is to consolidate these payments so that once you pay , nobody comes to you with any other demand notice. What we did was mere integration into the the government system,” Mr. Elekwachi explained.
He further clarified that the Board would not automatically treat every inflow into a taxpayer’s bank account as taxable income, noting that taxpayers would have the opportunity to explain and substantiate the nature of such transactions during the assessment process for those that demand for Tax Clearance Certificate (TCC).
Also, the Chief Press Secretary to Governor, Ctz. Ukoha Njoku Ukoha noted that the clarification that no tax was increased became necessary against the backdrop of the recent statements credited to some opposition party members, who are not comfortable with the developments witnessed in Abia under under Governor Alex Otti.
He said that the new tax law has harmonised every payment, adding that , whether it is stallage, ASEPA fee or any other, “what the government did was to consolidate it, so that once one pays, he has paid everything”.
The State Director of Information, Lady Chika Orji-Nwoke was present at the briefing.
