The organized private sector in Akwa Ibom State has described the ongoing sensitization on the New Tax Reforms as “enlightening, informative, necessary, and timely”, as it has provided them with a clear understanding of what the reforms entail and has also equipped their members to address common misconceptions in the public space.
The group, which consists of banks led by Mrs. Ndijeka Nwabukwu, the Branch Controller of the Central Bank of Nigeria in Uyo, as well as Chambers of Commerce and Industry and Corporate Organizations, made their comments on Monday after attending a presentation on the new reforms by Sir Okon Okon, the Executive Chairman of the Akwa Ibom State Internal Revenue Service (AKIRS) at the ICT Centre, Office of the Accountants General in Uyo.
Acknowledging and thanking Governor Umo Eno for the tremendous support and pragmatic directives he so far has given to AKIRS to marshall the ongoing sensitization and creation of awareness, Sir Okon Okon said the Tax Reforms were for the good of Nigerians in general.
On the implications and impact of the new reforms on the local government, the State and the federal government as well as individuals, groups and investors, he noted that there are presently about 63 different taxes in the existing tax framework which taxpayers have to pay as maybe applicable, but these have been reduced to about 10 under the tax reforms, with clear clarifications and categorical limits placed on what would go to each tier of the government and where there was need for negotiations for equity and fairness.
Hence, the new national tax reforms were design to lift considerable burden of taxes off Nigerians and will bring respite, boost economic activities, and drive growth and development across the country. He noted that the anxiety over the tax reforms was unfounded as the new tax regime was designed to correct observable loopholes in the national tax system, check multiple taxation, and curtail the activities of non-State actors and nuisance taxes.
Sir Okon, who is also a Fellow and Council Member of the Chartered Institute of Taxation of Nigeria (CITN), further stated that because the existing tax system which was rooted in colonial and archaic laws was marked by fiscal imbalance, the federal government in 2023 set up the Presidential Committee on Fiscal Policy and Tax Reforms to come up with comprehensive tax laws that would address the issues raised and offer taxpayers an harmonized tax admiration system.
“The outcome has been the provision of four new tax Acts meant to streamline and integrate tax administration in the country, namely, the Joint Revenue Board (JRB) Establishment Act 2025, which replaces the Joint Tax Board (JTB); the Nigeria Revenue Service (NRS) Establishment Act 2025, that replaces the Federal Inland Revenue Service (FIRS); the Nigeria Tax Administration Act (NTAA) 2025; and the Nigeria Tax Acts (NTA) 2025”
In addition, he also noted, at least 50 items have been exempted from tax under the new reforms as basic services and commodities such as food, education, health, rents, transport, etc, will attract zero percent VAT.
The State’s tax helmsman listed the impact of the new reforms for Akwa Ibom State to include direct improvement in the State’s fiscal position as VAT formula has been revised from 50 percent to 55 percent; strengthening of revenue administration and professionalism; eliminate consumption tax, improved business environment, and create opportunities for employment, etc.
Other impacts include exemption for retail investors, pension funds, stamp duty exemption on documents for stocks/shares transfers, lower business costs via input VAT credits, Capital Income Tax reduction from 30% to 25%, and provision of an Ombuds as a mediator between government and taxpayers who may have a cause for complaint.
Part of the objectives of the ongoing engagements, according to him, was to dispel misconceptions, help taxpayers see the benefits, and to seek collaboration with critical stakeholders in propagating the right message.
Speaking on behalf of the groups, Branch Controller, CBN, Uyo, Mrs. Nwabukwu Njideka; Reps of Chambers of Commerce and Industry, Eket, Mr. Aniedi Ikoiwak; Branch Manager, Zenith Bank, Udo Udoma, Uyo, and MD/CEO, Ibom Mortgage Bank, Pastor Ime Okon appreciated the programme and the AKIRS boss for his presentation which they said has adjusted perceptions on the new reforms, helped them to begin to focus on the benefits and prepare for January 1, 2026.
The sensitization is one in series already held with other stakeholders and sectors in the State.