Dr. Alex Otti, the governor of Abia State, has introduced a new digital tax system on Monday in an effort to get rid of fraud and middlemen from the state’s revenue-generating process.
According to the state’s chief executive officer, the new system, which incorporates a free medical insurance programme for all commercial vehicle drivers and riders of Keke and Okada, will allow the state to maximise its earning potential.
Speaking at the launch, Dr. Otti, who was flanked by some senior members of his cabinet, including the Chief of Staff, Dr. Caleb Ajagba; the Special Adviser on Internally-Generated Revenue, Mr. Chimereze Isaac Okigbo; and Special Adviser on Policies and Interventions, Rev Father Christian Anokwuru, said that the introduction of the new digital system will not only strengthen the state’s tax collection but would also promote economic growth and entrepreneurship in the state.
“By simplifying tax compliance procedures, we have removed barriers for businesses, encourage formalization, and stimulate investment. This initiative empowers entrepreneurs, enabling them to focus on their ventures’ growth and expansion, ultimately leading to job creation and economic prosperity for our state.
“By eliminating fraud, and intermediaries, and introducing the digital platform to block leakages, we will unlock the true potential of our tax system to maximize revenue for development projects.
“The digitalized tax regime ensures that every business, large or small, contributes its fair share towards the growth of our state. With the expected increased revenue, the government can invest in infrastructure development, education, healthcare, and other essential sectors that will uplift the lives of all Ndi Abia,” Governor Otti affirmed.
He declared that the free medical insurance scheme component of the new digital tax payment system is a fulfillment of his campaign promise to create an affordable health care delivery “for our people across all sectors and segments” of society.
The new digital tax system essentially aims at sanitizing revenue generation in the transport sector and the markets. While the Permit to Operate Tickets targets those in the transport business, the Innovative Traders Tax Payment aptly targets traders in the market areas.
“Unlike in the past when revenue agents abused these daily tickets with all manner of collectibles, now, we are promoting Transparency and Ease of Compliance in our commitment to making tax compliance simpler and more accessible. The digitalized tax regime introduces enumeration and easy-paying platforms which includes the use of USSD and wallet services.
“The Permit to operate Tickets for Transporters has been designed in bouquets which gives the commercial transport operators options to choose among the daily, weekly and monthly scheme. This has eliminated all forms of middlemen that have been meddling in our revenue collection space. We are also optimistic that this model will eventually eliminate and reduce the risk of extortion, promote transparency, increase tax compliance, strengthen ease of doing business in Abia state, and empower these businesses to operate within a legally defined framework and environment,” the governor said.
In the same vein, he said the new framework for Innovative Traders Tax Payment “is the first of its kind in our state”. According to him, it was carefully designed within the ambit of the principle of convenience and fairness.
“This model gives the traders in all our major markets the benefit of prorating their annual Market levy in a Monthly, Quarterly, Bi-Annually, or Annually. A thorough consideration was made to accommodate this model so as to cushion the effect of economic hardship and business cycle volatility. This was our promise to Ndi Abia during our campaign and we are keeping to that,” he explained.
