Tax Reforms: Abia avoids federal tax reforms controversy, simplifies system in State ‘to enhance ease of compliance

December 4, 2024
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While the federal tax reform bills are still bugged down before the National Assembly (NASS) by misgivings about their clear intents, the Abia State government has announced a breakthrough in its tax administration reforms: according Gov. Alex Otti, Abia just took a more simplified route to the administration the state’s tax system to enhance ease of compliance and encourage economic growth in the state. And he is certain God’s own State has got it!

Accordingly, Otti who spoke yesterday (Tuesday, December 3) at the inauguration of the rehabilitated Obiorah Street, Aba, urged the people to be “active participants” in the payment of taxes and statutory revenues to the state.

“We have simplified the tax payment system for individuals and businesses using digital technology platforms and systems,” Governor Otti enthused.

“What we have achieved with these is that all channels of revenue leakage are closed in order to build confidence in the system.”

He expressed the government’s determination to ensure that all the taxable entities that were not in the state’s tax net are adequately captured.

“So, our focus going forward will be to address and bring in these entities into the tax net and that is the only way to find the resources we need to achieve our holistic development agenda,” the Abia Governor said.

He also disclosed that the state’s tax system has been structured to ensure that there would be no room for extortion and other forms of abuses in the system, explaining that the government has created a mechanism to ensure that any revenue generated shall be fully accounted for and properly utilised.

Otti said that the application of prudence in the use of public resources has enabled the Abia government to limit its exposure to local and foreign creditors.

“This is the clearest indication that we are running a disciplined government, one that is committed to nothing else but the welfare of the general population,” Otti further enthused.

“The point we are raising is that in the last 18 months, we have focused on delivering the dividend of democracy to our people.

“We have reduced our debt profile drastically and we have not borrowed a kobo from anybody.

“This shows that your taxes are working,” he assured.

Disclosing that the Obiorah Street project was done through direct labour, the Governor commended the state Ministry of Works for doing an excellent job, adding: “I have it on good authority that the quality of work done on this road is as good as the work that Julius Berger is doing on Port Harcourt Road.

“The entire cost is just about 30 percent or 25 percent of what it should have been, if we had contracted it out.”

He described the road as a testament to the government’s commitment to actualising its rebuilding agenda in Abia State.

In a speech, the Commissioner for Works, Mr Otumchere Oti, described the road as crucial to revitalising Aba, Abia’s commercial nerve center, explaining that the road was originally an earth road but the construction has raised its status to an asphaltic concrete road.

He said: “It has a length of 480 meters with a carriage way width of 8.2meters; the pavement consists of 150milimeter, thick laterite softbase, 150milimeter stonebase, 50 milimeter asphaltic concrete binder course and 40 millimeter asphaltic concrete wearing course.

“It is lined on both sides with reinforced concrete drains and the entire length provided with solar street lights; road marking was also carried out.”

Oti urged Aba residents to desist from engaging in activities that would adversely affect the road.

In his remarks, the lawmaker representing Aba Central State Constituency, Mr Stephen Ucheonye, commended the government for executing a project that would improve the welfare of the people.

Ucheonye said that the road would play a vital role in improving traffic and boosting commercial activities within the area.

Similarly, Chairman of Aba South Local Government Area, Mr Nwobilor Anyanwu, commended the State Government for the construction of the road.

Anyanwu said the road has given residents a new lease of life and increased the value of commercial and residential property in the area.

A resident of the area, Mr Geoffrey Ike, said the construction of the road had brought an end to years of untold hardship experienced by residents, noting that the project has given residents a sense of belonging.

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