Governor Peter Mbah has announced plans for an investigation into claims of increased taxes in Enugu State.
According to a statement released on Friday by his spokesperson, Uche Anichukwu, the governor clarified that his administration has only broadened the tax collection system without raising the actual tax rates. He attributed the significant increase in the state’s internally generated revenue to the implementation of electronic payment methods and technology, which have effectively curbed revenue losses.
He accused those who benefited from the previous, corrupt tax collection methods of spreading “inaccurate stories about taxation” in the state.
The governor noted that the state’s IGR had surged to N180.05 billion, a substantial increase from N37 billion in 2023, placing it fifth in the 2024 IGR rankings for the 36 states and the FCT, recently published by the National Bureau of Statistics. He mentioned that Lagos State topped the list with N1.26 trillion, followed by Rivers, FCT, and Ogun with N317.3 billion, N282.3 billion, and N194.9 billion, respectively.
“The talk about taxation is largely inaccurate. However, I have committed to establishing a committee comprising market associations, civil society groups, non-governmental organizations, and other relevant stakeholders,” the statement read.
He explained that the committee would “conduct a review of the tax situation and produce a report.”
“I believe that we have not increased the tax rate based on our actions. Furthermore, our laws prevent us from doing so, as the issue of personal or corporate income tax falls under the jurisdiction of the National Assembly,” Mr. Mbah stated.
He clarified that only laws enacted by the National Assembly could adjust these rates.
“The only thing we did, which we believe is being used for political purposes, is that we dislodged certain vested interests. Payments are now made directly to the state treasury, putting an end to the practice of individuals going to markets with paperwork and harassing people, such as drivers and tricycle operators, to collect cash.
“When you introduce programs and policies like these, you inevitably displace certain vested interests, and they will inevitably resist. They will not surrender without a fight. This false narrative is presented in a way that might mislead you if you haven’t conducted your own independent inquiry. You might be inclined to believe it is true,” he explained.
