New Tax Reforms to Bring Major Relief— AKIRS Chairman Assures Citizens…Says Akwa Ibom Set for Higher VAT Share, Better Business Climate

 

The Chairman of the Akwa Ibom Internal Revenue Service (AKIRS), Mr. Okon Okon, has assured residents and businesses in the state that the new national tax reforms currently being implemented by the Federal Government will bring far-reaching reliefs, curb multiple taxation and boost economic growth across the country.

Addressing journalists yesterday at the Nigeria Union of Journalists (NUJ) Press Centre in Uyo, Okon said the reforms, introduced after the Federal Government set up a Tax Reforms Committee in 2023, had stirred public anxiety, making it necessary for authorities to explain their true intentions and benefits. He emphasized that the new framework was designed to correct long-standing challenges in Nigeria’s tax system, many of which were rooted in outdated colonial-era laws. According to him, the previous system was characterized by fiscal imbalance, inconsistent tax administration across different jurisdictions, insufficient transparency and multiple taxpayer identifiers, all of which complicated compliance for individuals and businesses.

Okon explained that the reform process has produced four new tax acts: the Joint Revenue Board Establishment Act 2025, which replaces the former Joint Tax Board; the Nigeria Revenue Service Establishment Act 2025, which replaces the Federal Inland Revenue Service; the Nigeria Tax Administration Act 2025; and the Nigeria Tax Act 2025. These laws, he said, consolidate and streamline tax administration nationwide.

He noted that for individual taxpayers, the reforms introduce significant reliefs, including income tax exemptions for Nigerians earning up to N1 million annually and reduced PAYE rates for those earning up to N1.7 million monthly. Essential services and commodities such as food, healthcare, education, rent and transportation will now attract zero percent VAT, a measure he said would ease household financial pressure. He added that the introduction of a national tax identification number would help simplify compliance, reduce bureaucracy and limit opportunities for corruption, while also freeing up capital for reinvestment, business expansion and job creation.

Speaking on the benefits to Akwa Ibom State, the AKIRS Chairman said the reforms would directly strengthen the state’s fiscal position, as its share of VAT revenue would rise from 50 to 55 percent. This, he explained, would enhance revenue optimisation and promote fiscal sustainability. He added that the reforms would also eliminate consumption taxes, improve revenue administration, harmonize tax processes and curb the activities of non-state actors who impose illegal levies, thereby improving the ease of doing business in the state.

Okon further stated that at the national level, the reforms consolidate multiple tax laws into a more coherent unified framework, broadening the tax base and improving the country’s ability to generate revenue without placing undue strain on businesses or households. He said the measures are expected to lower business risks, reduce the tax burden for enterprises, bring economic relief to families and support the federal government’s drive toward economic growth and long-term fiscal stability.

Also speaking during the briefing, the Akwa Ibom State Commissioner for Information, Mr. Aniekan Umanah, said the state would fully participate in the implementation of the reforms. He stressed that taxation is essential for societal development, noting that government needs adequate resources to meet critical needs in education, road infrastructure and other public services. Umanah said the reforms would ultimately reduce multiple taxation and improve the overall welfare of citizens, as they are designed for the betterment of society.

In his remarks, the Chairman NUJ, Akwa Ibom State Council, Comrade Nsibiet John thanked the Chairman of AKIRS for seeing the need to brief Journalists over growing concerns as presented by the new tax reforms as this would go a long way to allay fears and suppress misconception.

The event also had the Commissioner for Finance, Mr. Emem Bob and other stakeholders in attendance