By Victor Essang
UYO
The Akwa Ibom State Internal Revenue Service (AKIRS) has initiated broad engagement with key stakeholders to explain and promote understanding of Nigeria’s new tax reform.
The effort aims to reassure citizens that the reform will simplify taxation, eliminate multiple levies, and ease the tax burden on low-income earners.
The enlightenment session, which took place at the NUJ Press Centre in Uyo, was led by the AKIRS executive chairman, Sir Okon Okon, who described the engagement as essential for disseminating accurate information, fostering dialogue, and equipping media stakeholders with the correct understanding of the reform’s goals and benefits.
Addressing journalists, Okon said widespread misconceptions had caused unnecessary public anxiety, noting, “There is so much apprehension about the new system, but much of it is unfounded. I have come to say clearly that there is no cause to panic.”
He explained that the previous tax system was outdated and burdened by multiple, duplicative taxes, fiscal imbalance, inefficient administration, uneven professional standards, and lack of uniformity nationwide, adding that many taxes were considered nuisance levies that complicated compliance and disproportionately affected low-income earners.
The new national tax reform is anchored on four legal pillars: the Joint Revenue Board Act, Nigeria Revenue Service Act, Nigeria Tax Administration Act, and Nigeria Tax Act, while expected benefits include full digitalisation of tax processes, elimination of multiple taxation, adoption of global best practices, and introduction of a single national tax framework.
Okon also announced the introduction of a National Tax Identification Card for every citizen to improve planning and tracking of tax obligations.
Key reliefs under the new system include: From January 2026, only individuals earning N1 million or more annually will pay personal income tax. Those earning below N800,000 annually will be fully exempted.
Also, Value Added Tax (VAT) will be removed from essential goods and services such as health, education, food, rent and transport, while 50 essential items will be exempted from tax.
Furthermore, small businesses with annual turnover below N100 million will be exempted from Company Income Tax.
Meanwhile, Capital Gains Tax has been abolished.
“These reforms reduce the tax burden on ordinary Nigerians and shift the focus to broadening the tax net through technology and improved compliance,” Mr. Okon said. He added that the reforms are in the best interest of Nigeria and should not be feared.
Okon outlined expected gains for the state to include higher VAT revenue allocation, better revenue optimisation, improved compliance through automation, and a reduction in the number of taxes from over 40 to just nine.
He also announced a single haulage fee to eliminate extortion and multiple checkpoints.
In a goodwill message, the commissioner for Information, Dr Aniekan Umanah, commended AKIRS for leading public sensitization efforts, stressing that taxation is a collective civic responsibility and a vital driver of societal development.
“The new tax act will influence how we do things going forward. Tax is an instrument for development, and this engagement is a crucial first step in enlightening the public,” he said.
The commissioner for Finance, Mr. Emem Bob, also praised AKIRS for its bold public sensitisation steps and affirmed the government’s commitment to the welfare of the people.
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