Abia Govt Rolls Out Tax Reforms, Says Automation is not Tax Increase

UMUAHIA, Abia State – The Abia State Government has said its ongoing reforms in tax administration are focused on transparency and efficiency, not on increasing tax burden on citizens.

The Commissioner for Information, Prince Okey Kanu, disclosed this on Monday during the post-Executive Council briefing in Umuahia.

“Since the inception of this administration, the focus has been to make tax administration in our state more transparent, traceable, auditable, automated, and taxpayer-friendly,” Kanu said.

He explained that the previous system allowed for manual interventions, cash handling, arbitrary practices and poor accountability.

Under the new system being driven by the State Board of Internal Revenue, taxpayers will know “exactly what they are being assessed to pay, why they are being assessed, and how much they are required to pay through government-approved channels.”

“Automation, therefore, is not a tax increase. Transparency is not a tax increase. Closing revenue leakages is not a tax increase,” he stressed.

“People resist change. Bad and dubious people resist change the more. Therefore, there is bound to be pushbacks from certain sections of society.”

Quoting Governor Alex Otti, the Commissioner said taxation is “government’s share of the prosperity it creates for the citizenry,” and the state will continue to administer taxes that reflect improvements in governance.

Lending his voice, the Chairman of the Abia State Board of Internal Revenue, Uche Elekwachi, clarified that the ongoing reforms in the state’s tax system are not introducing new taxes, but are aimed at blocking leakages and ensuring proper assessment.

Elekwachi said the Board does not have powers to increase or reduce taxes, and that no new rates have been introduced since he assumed office on June 1, 2026.

“One thing that we need to be clear about is that taxes are a law. And the BIR does not have the power to increase tax or reduce tax,” he said.

On Tax Clearance Certificate, the BIR Chairman said there has been no increment.

He explained that the new tax law requires proper assessment before TCC is issued. Previously, many people paid a flat *N30,000* in a whole year for TCC.

“If you’re paying 30,000 in the whole year, it means that you’re earning less than 500,000 in the whole year. And these are people that have vehicles. These are people that have children in schools,” he said.

Under the new system, taxpayers are asked to submit details and bank statements for proper assessment in line with federal guidelines. Where details are not provided, the Board issues “best of judgment” assessments.

“A few people came and brought it, and their taxes were in millions, and they ran away,” he noted. “Those who have brought their details and we have checked, we allow them to even go without pay. As it stands now, if you want to pay 10,000, you can pay. But to get that tax clearance certificate, you need to do it by the way that is approved now.”

He stressed that TCC is a federal requirement and not created by the state government. “Less than 5% of those who have entered actually want TCC. And those who want TCC, maybe someone bought a land of 20 million, and they want to come and pay the government 30,000. How possible is that?”

On concerns by traders, Elekwachi said the government has introduced a harmonized demand notice that consolidates ASEPA, business premises, signage and stallage fees into a single payment per shop.

“Before now, you pay for stallage, they will bring ASEPA, they will bring this, they will bring business premises… So what the government did now is to consolidate it so that once you just pay once, nobody comes to you for any other thing,” he said.

He clarified that the payment is per shop. “If you have 20 shops, you will be mandated to pay per shop. If five people are using one shop, we are interested in the shop. But if one person has five shops, he has to pay per shop.”

The Chairman said the harmonization is backed by an existing tax law and is meant to ensure “ease of doing business” by stopping multiple harassment by different agencies.

Elekwachi also clarified that civil servants who pay PAYE and also run businesses must pay taxes on their business income.

“If you have a shop, that is a different business… you have houses around where you are collecting different monies, and you say you are not going to pay tax because you are paying PAYE. It’s about income,” he stated.

He added that proper assessment will be done and not all monies in a bank account are assumed to be taxable income.