BusinessNewsNigeriaAbia State government launches digital tax payment system for transporters, traders

In a statement on Tuesday, Kazie Uko, the chief press secretary to the Governor, said the digital tax system also integrates a free medical insurance scheme for all commercial vehicle drivers and riders of tricycles (Keke) and motorcycles (Okada).

Speaking at the launch, Otti 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.

The Governor said, “By simplifying tax compliance procedures, we have removed barriers for businesses, encouraged formalisation, and stimulated 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 maximise revenue for development projects.”

He continued, “The digitalised 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.

“Unlike in the past when revenue agents abused these daily tickets with all manner of collectables, now, we are promoting transparency and ease of compliance in our commitment to making tax compliance simpler and more accessible. The digitalised tax regime introduces enumeration and easy paying platforms which includes the use of USSD and wallet services.”

The new system comprises the ‘permit to operate tickets’ for those in the transport business and the ‘innovative traders tax payment’ for traders in the market areas.

Otti said both systems will sanitise revenue generation in the transport sector and the markets as well as eliminate fraud and intermediaries in revenue generation.

“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,” he explained.

“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 the new framework for ‘innovative traders tax payment’ “is the first of its kind in our state”, adding that 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,” he stated.

“A thorough consideration was made to accommodate this model 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.”

Otti also noted that the free medical insurance scheme component of the digitalised tax payment system is a fulfilment of his campaign promise to create an affordable health care delivery “for our people across all sectors and segments” of society.

The brief event was attended by some senior members of Otti’s cabinet, including the chief of staff, Caleb Ajagba; the Governor’s special adviser on internally-generated revenue, Chimereze Isaac Okigbo; and the special adviser on policies and interventions, Rev. Fr. Christian Anokwuru.