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Akwa Ibom to fully digitalize tax collection by 2025

Isaac Job by Isaac Job
November 18, 2024
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The Akwa Ibom State Internal Revenue Service (AKIRS) has announced its plans to fully digitalize all tax and revenue collection processes starting in the 2025 fiscal year. This initiative aims to enhance efficiency, broaden the tax base, and boost the state’s Internally Generated Revenue (IGR) without increasing tax rates.

The announcement was made by the Executive Chairman of AKIRS, Mr. Okon Okon, during a press briefing in Uyo on Sunday. The event was part of a two-day strategic session organized to evaluate the board’s performance and set revenue goals for the years ahead.

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Mr. Okon revealed that the digitalization strategy will introduce a suite of technological innovations, including; Electronic Assessment, aimed at streamlining the processes for evaluating taxable incomes. E-Tax Clearance Certificates: which will aid faster and more transparent issuance of clearance documents. E-Filing of Tax Returns: that will enable taxpayers to file returns online from anywhere and Automation of Registration, Collection, and Reporting: that will minimizing human interference to ensure accuracy and transparency.

“We are pleased to inform the public that we will expand the automation of our processes and deepen our data-driven initiatives to significantly improve operational efficiency and taxpayers’ experience,” Okon stated.

The digitization effort aims to capture tax evaders and improve compliance without imposing additional burdens on taxpayers.

Highlighting Akwa Ibom’s impressive revenue performance, Mr. Okon noted that the state’s IGR rose from N34.75 billion in 2022 to N43.18 billion in 2023, as reported by the National Bureau of Statistics (NBS) and the Joint Tax Board.

“Our IGR trend shows significant and steady growth, with about 170% increase over the past six years, rising from N15.96 billion in 2017 to N43.18 billion in 2023,” he said.

Read Also: Man shot dead by gunmen at popular Express Junction in Delta

Akwa Ibom is now ranked among the top 10 states in IGR performance nationwide and 4th among the nine Niger Delta states, a testament to governance reforms, improved corporate practices, and a business-friendly environment fostered by Governor Umo Eno’s administration.

Addressing tax evasion by International Oil Companies (IOCs), Mr. Okon acknowledged progress with Mobil Producing Nigeria Unlimited, which now remits its taxes promptly. However, he noted that other oil firms have delayed payments due to ongoing legal disputes.

“We hope that once these court cases are resolved, the affected oil companies will remit their taxes accordingly,” Okon stated.

AKIRS plans to intensify its tax sensitization and awareness campaigns to educate residents on the importance of tax payment as a civic responsibility.

“Our focus is not just on enforcement but also on deepening voluntary compliance through education and engagement,” Okon emphasized.

The board reassured businesses and individuals that its tax reforms will not stifle business growth or create unnecessary burdens.

Tags: Akwa Ibomdigitalize all tax and revenue collection processesincreasing tax ratesInternally Generated Revenue
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