A’Ibom Tax Reform Bills to Protect Low-Income Earners, Boost SMEs — AKIRS Assures Amid Dissenting Voices

 

By Asuquo Edem 

The Chairman of the Akwa Ibom State Internal Revenue Service (AKIRS), Sir Okon Okon, has assured residents that the proposed State tax reform bills before the Akwa Ibom State House of Assembly are designed to protect low-income earners, stimulate small and medium-scale enterprises (SMEs), and strengthen economic growth, despite concerns and dissenting opinions raised by some stakeholders.

Sir Okon gave the assurance on Wednesday during a public hearing on three executive bills organised by the House Committee on Finance and Appropriation. The bills include the Akwa Ibom State Revenue Service and Administration Bill 2025, Akwa Ibom State Taxes and Levies Bill 2025, and the Akwa Ibom State Betting and Lottery Regulatory Agency Bill 2025.

Addressing stakeholders, the AKIRS chairman—who is also a member of the Presidential Committee on Fiscal Policy and Tax Reforms—said the reforms would eliminate multiple taxation, harmonise tax administration across the state, and end practices such as illegal roadblocks for revenue collection.

According to him, the bills seek to collapse about 46 different state and local government taxes into nine unified taxes, reduce the tax burden on businesses, and improve the ease of doing business in Akwa Ibom State.

“For low-income earners, anyone earning ₦800,000 and below annually is completely exempted from personal income tax. Last year, the threshold was ₦300,000,” Okon said.

He added that five essential items—food, healthcare, education, rent, and mass transportation—have been placed on zero VAT, describing the move as a major relief for households.

Sir Okon further explained that the proposed laws would abolish nuisance taxes, eliminate minimum tax on losses, digitise tax processes for transparency and accountability, and promote uniform tax rates across the federation.

He described the outgoing tax regime, which expired on December 31, 2025, as archaic and no longer suited to modern economic realities.

Earlier in his opening remarks, the Speaker of the Akwa Ibom State House of Assembly, Rt. Hon. (Elder) Udeme J. Otong, represented by the Deputy Speaker, Rt. Hon. KufreAbasi Edidem, said the public hearing was aimed at gathering stakeholder input to ensure inclusive, transparent, and people-oriented legislation.

Otong noted that the bills were far-reaching and critical to strengthening revenue administration, regulating betting and lottery activities, and expanding the state’s economic base beyond civil service dependence.

He emphasised that public hearings remain a core democratic tool for sampling public opinion and ensuring that laws reflect the collective aspirations of the people.

In his address, the Chairman of the House Committee on Finance and Appropriation, Dr. Itorobong Etim, said the hearing was organised in line with best legislative practices and constitutional provisions to allow stakeholders contribute meaningfully to laws that directly affect their lives.

Dr. Etim explained that the repeal of the existing Revenue Administration Law and its replacement was intended to domesticate the Nigeria Revenue Service Acts, 2025, at the state level, strengthen revenue collection, improve tax compliance, and boost internally generated revenue.

However, the public hearing also witnessed dissenting views, particularly from the Commissioner for Finance, Mr. Emem Bob, who raised concerns over provisions of the proposed Revenue Service and Administration Bill.

Bob cautioned that the draft law appeared to weaken the oversight role of the State Ministry of Finance, unlike the federal model, and warned that excluding the ministry could create parallel structures and inefficiencies in revenue administration.

He called for the reinsertion of key provisions of the Nigeria Revenue Service (Establishment) Act, 2025, which mandate policy direction, oversight, and reporting to the Minister of Finance, including annual reporting requirements, approval of regulations, and board composition that includes finance ministry representation.

According to him, retaining the ministry’s oversight role would enhance accountability, ensure policy alignment, and optimise revenue administration in the state.

The public hearing was attended by lawmakers, including the Deputy Chairman of the Committee, Rt. Hon. Asuquo Udo; Commissioners for Budget and Economic Planning, Dr. Linus Nkan; Transportation, Dr. Anthony Luke; Chairman of the Nigeria Labour Congress (NLC), Comrade Sunny James; representatives of civil society organisations, the Chartered Institute of Taxation of Nigeria (CITN), the Institute of Chartered Accountants of Nigeria (ICAN), and other stakeholders.

Despite divergent views, the House Committee assured participants that all submissions would be carefully reviewed before the bills are finalised and passed into law.