Abia debunks N50,000 akara tax claim

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Abia State Governor, Alex Otti

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By Steve Oko

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Abia State Government has debunked reports that akara sellers and other petty traders in the state are being compelled to pay N50,000 as tax, describing the claim as misinformation.

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The government also said it had approved the designation of some historical and natural sites as State Monuments and State Natural Monuments, while declaring Aba a Creative and Innovative City.

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Commissioner for Information, Prince Okey Kanu, disclosed this on Monday while briefing journalists on the outcome of the State Executive Council meeting presided over by Governor Alex Otti.

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Kanu said the historical sites approved as State Monuments include the National War Museum, Umuahia; Ojukwu Bunker, Umuahia; and Government College, Umuahia.

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Those designated State Natural Monuments are Ibom Waterfall in Arochukwu and Ulochukwu Cave in Alayi, Bende Local Government Area.

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According to him, the designations would strengthen the government’s efforts to preserve the state’s cultural and natural heritage, promote tourism and open up new economic opportunities.

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“These sites have been elevated to heritage sites that enhance the state’s tourism potential. With this approval, they are primed to attract recognition as UNESCO Heritage Sites,” Kanu said.

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He further disclosed that Aba had been designated a Creative and Innovative City in recognition of its longstanding commercial, industrial and creative significance.

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The commissioner said the retrofitting of the Ojukwu Bunker and National War Museum had reached about 80 per cent completion and was expected to be concluded before the end of 2026.

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He said the projects would improve the preservation of the sites, enhance visitors’ experience and strengthen their tourism potential.

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Kanu also disclosed that the Ministry of Arts, Culture and Creative Economy had received approval to develop the Ibom Waterfall Tourism Corridor in Arochukwu.

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He said work had commenced, including grading of access roads to the waterfall, with completion expected before the end of the year.

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The commissioner added that the state government had commenced the erection of monuments at strategic locations to preserve Abia’s heritage, honour its heroes and heroines and promote the state’s cultural identity.

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He cited a monument being dedicated to the heroines of the 1929 Aba Women’s Riot as one of such initiatives, saying it would celebrate their courage, resilience, resistance and leadership.

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No N50,000 tax on akara sellers
On the controversy over alleged excessive taxation, Kanu said there had been no fresh increase in tax rates by the Abia State Board of Internal Revenue, noting that most of the rates being circulated were contained in tax laws enacted in 2020 under the previous administration.

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He stressed that the Board could not unilaterally increase tax rates without enabling legislation.

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“For starters, these rates are not new. Most of the rates are 2020 tax rates that were introduced by the previous government.

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“Let me reiterate that the Board of Internal Revenue cannot raise tax rates without the backing of enabling laws. And no such increases have been introduced by the Abia State Government,” he said.

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Kanu explained that demand notices issued by the BIR were provided for under the law, urging taxpayers to comply with relevant tax provisions while assuring that legitimate concerns would be addressed by the appropriate officials.

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On the specific claim that akara sellers were being made to pay N50,000, he said: “This is pure fallacy. Nothing can be further from the truth. Akara sellers don’t pay tax or levies. They pay daily tolls. And none can pay N50,000.”

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The Chairman of the Abia State Board of Internal Revenue, Mr Uche Elekwachi, corroborated the clarification, saying there was no revenue window under the state’s tax laws requiring akara sellers to pay such an amount.

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Elekwachi said the Abia Internally Generated Revenue Service Law establishing the applicable framework was enacted in 2020, before the present administration came into office..

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“This whole thing has always been in existence. The Abia Internally Generated Revenue Service Law was enacted in 2020 long before this government came onboard, so we need to make that clarification,” he said.

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Gratuity: 2011–2025 retirees next

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On outstanding gratuities owed retired workers, Kanu disclosed that the government had completed payments covering 2001 to 2010 and was preparing for the next batch covering 2011 to 2025.

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He said the next payments would commence after the completion of ongoing internal verification and other necessary processes.

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The commissioner dismissed claims that the government had only commenced gratuity payments because of pressure from the opposition, explaining that the huge financial commitment involved made payment in batches necessary.

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“The payments will be in batches. The funds involved are huge for one balloon payment,” he said.

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Kanu also clarified reports suggesting that gratuity payments would continue only until 2031, explaining that such reports are incorrect.

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He explained that the State Gratuity Committee had recommended the inclusion of gratuity provisions in the state’s 2026–2031 Medium-Term Expenditure Framework and subsequent annual budgets to ensure that gratuity obligations were systematically provided for and prevent the accumulation of fresh arrears.

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“That does not translate to payments being terminated in 2031. As the internal processes and verification of beneficiaries of these payments continue, due payments would still be made in batches,” he said.

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He added that the government remained committed to clearing the outstanding liabilities and expressed optimism that the process could be completed earlier than anticipated.

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“The conclusion of payment of outstanding gratuities may happen earlier than we ever imagined. Let us therefore wait and see how the next batch of payments will unfold,” Kanu said.

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The Commissioner for Arts, Culture and Creative Economy, Mr Matthew Ekwuribe, and the Special Adviser to the Governor on Internally Generated Revenue, Dr Emmanuel Okpechi, were also present at the briefing.

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