The executive chairman of the Akwa Ibom State Internal Revenue Service (AKIRS), Sir Okon Okon, has stated that the greatest beneficiaries of the New Tax Reforms are largely the poor and low income earners as the whole essence was to bring relief to them and others.
He noted that the reforms came with laws guiding tax administration in the country, including the types of taxes, number of taxes to be paid, who pays what, collection framework and approved percentages, among others.
Sir Okon who is a Fellow and Council Member of the Chartered Institute of Taxation of Nigeria (CITN), gave the highlights, recently, while speaking on Memories FM, 96. 5, Uyo, during a popular public interest programme called “Good Morning Akwa Ibom”.
The AKIRS chairman, who is also member, Presidential Committee on Fiscal Policy and Tax Reforms, listed benefits of the reforms to include reduction in taxes payable by certain classes of individuals; removal of multiple taxation and roadblocks for the purpose of revenue; zero VAT on major household expenditure items like food, health care, education, transportation, rents, renewable energy; and technology and automation of tax processes and procedures which promote transparency and efficiency in service delivery.
For the business community, he said the benefit include promotion of ease of doing business; removal of charges on minimum tax for company income tax; and introduction of presumptive tax regime for the informal sector; modification in collection of haulage, etc.
Read Also: New Tax Laws: Pains Or Prosperity?
Describing the new tax policy as progressive, Okon explained that individuals earning less than 800, 000 to 1million in a year are exempted from paying income tax; while businesses with less than 12million yearly turnover are also removed from paying company income tax.
He observed that this was the first time in the history of Nigeria before and after independence that a major tax reforms had been carried out to reflect contemporary realities.
“The four Tax Acts passed by the Federal Government provided the ground and guide for the Akwa Ibom State government, like other states, to domesticate the Internal Revenue Service (Establishment) Law in the form of Harmonized State Taxes and Levies and related activities like lottery, gaming and pools.
“Hitherto, they were regulated by the Federal Government not until a Supreme Court ruling ceded the power to states. I must add that tax is not only for the purpose of getting revenue, but a fiscal tool to moderate government policies and drive growth and development by way of redistributive income. Not only the poor and low income earners are beneficiaries. The new reforms positively impact the generality of the citizenry”.
He noted that the whole idea was to sanitize the tax system in the country and bring relief, especially to the poor and low income groups as well as nano, small and medium scale enterprises that are the engine of the economy.
Thanking taxpayers in Akwa Ibom State, Sir Okon particularly commended the Akwa Ibom State governor, Pastor Umo Eno, for his prompt transmission of tax-related bills to the House of Assembly, his subsequent assent and prudent management of the state resources manifest in the rapid growth and development in the state, which has given taxpayers ample reasons for voluntary compliance.
He, however, advised taxpayers to pay their taxes only into the Treasury Single Account (TSA) through the AkwaRemit platform, as physical handling of cash with regards to tax is now criminalised by law.
