New tax regime in Abia will end tears and sorrow.

The new tax regime being put in place by the Abia State government is targeted at removing all forms of fraudulent practices that had bedeviled tax payment and collection in the past, Governor Theodore Orji has said. The governor, who stated this yesterday at the maiden Abia State Revenue Summit held at the Michael Okpara Auditorium, Umuahia, said it was regrettable the more than 80 per cent of the taxes, levies and revenues collected went into private pockets, saying that with the new regime that would stop. He said what the revenue agents did was to get government approval to collect levies, taxes and revenues and then adopt all kinds of draconian method to collect them. The governor said their operations lacked human face, adding that the outcry it generated could no longer be ignored by the government. Governor Orji said though the government has to raise funds for its operations, it however, must be done taking into consideration the feelings of the people, calling on participants at the summit to generate a tax blueprint that would be acceptable and workable. “We want the taxes paid without grudging; it is not the intention of government to impose levies, but having given me your mandate, I have to ameliorate your suffering. “When I heard the cry of Abia people, especially from Aba and Umuahia, I responded immediately by stopping all forms of taxes and levies. “The people are right to agitate against the levies, fees and revenues, because they are too much.” Besides, government, according to the governor, needs revenue to develop the state. He appealed to the people to discard the tradition of tax evasion, which he said was common during the colonial era, saying that the revenue would be used to develop the state for the benefit of all. In his speech, the Finance Commissioner, Dr. Philips Nto, said government was investigating some subtreasuries in connection with revenue fraud, adding that with dwindling oil prices, government could no longer depend on allocations from Abuja. He said the summit became necessary so that stakeholders would be involved in the formulation of a workable tax policy for the state, adding that the ongoing reform also targets securing pension funds through e-payment.

If he had instituted this new tax regime during his first year in office, Abia state would have been much better for it by now; possibly returning in the neighbourhood of 4 billion naira per month IGR!

Easy Gov. tax issue is always delicate.