ABIA GOVT DENIES ALLEGED TAX HIKE, SAYS REFORMS ARE AIMED AT IMPROVING REVENUE COLLECTION

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By:Tajudeen Aminat

The Abia State Government has dismissed reports of plans to impose excessive taxes on residents, insisting that it remains committed to a fair and transparent tax system.

The government also denied allegations that it was charging politicians and business owners exorbitant fees before issuing tax clearance certificates.

The clarification followed complaints from some traders and opposition parties accusing the state government of imposing heavy tax burdens on residents.

Speaking with journalists in Umuahia on Monday after the State Executive Council meeting presided over by Governor Alex Otti, the Commissioner for Information, Okey Kanu, described the allegations as unfounded.

Kanu said the government had prohibited multiple and arbitrary tax collection points across the state as part of efforts to streamline revenue collection.

He explained that the Abia State Internal Revenue Service lacked the authority to unilaterally increase tax rates.

According to him, the government would not arbitrarily classify funds or payments made into taxpayers’ bank accounts as taxable income. Rather, such funds would be subjected to lawful assessment and verification to determine which portions constitute taxable income.

Also speaking, the Chairman of the Abia State Board of Internal Revenue, Uche Elekwachi, said the board had not increased taxes but was enforcing existing tax laws.

Elekwachi said the agency had introduced measures to improve tax compliance, strengthen revenue collection and eliminate leakages within the system.

He further disclosed that some individuals allegedly posing as tax agents and defrauding traders in Umuahia had recently been arrested and charged to court for prosecution.

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