Itoro Bassey
Akwa Ibom is about to join about nine other state governments that have domesticated the new federal tax law: the Nigeria Tax Administration Act (NTAA) 2025 (Section 87–99), as legislative deliberations progress at AKHA on the following three Executive bills:
i Akwa Ibom State Revenue Service and Administration Bill 2025
ii Akwa Ibom State Taxes and Levies Bill 2025 which includes the Property
iii Akwa Ibom State Betting and Lottery Regulatory Agency Bill 2025.
Mr Okon Okon, the Executive Chairman of Akwa Ibom State Internal Revenue Service (AKIRS), gave highlights on the tax bills at a public hearing organised by the Akwa Ibom State House of Assembly Committee on Finance and appropriation at Luton Park Hotel, Uyo.
He said the tax harmonisation law is aimed at ending the era of multiple taxation, nuisance taxes, and uncoordinated levies that had hitherto bedevilled tax payers at the state and local government levels.
Before the enactment of the NTAA, the federal government collected 18 types of taxes, and state government collected 26, while the local government collected 21 types of taxes, altogether 65 taxes.
Now, with the bills being considered by the House of Assembly, only 9 types of taxes are being proposed for the people of Akwa Ibom to pay, if passed as presented to the legislature by Governor Umo Eno.
Below are the proposed 9 State Harmonized Taxes and Levies highlighted at the AKHA public hearing, yesterday.
1. INCOME TAX
a. PAYE
b. Direct assessment
c. Capital gains tax
d. Withholding tax
e Presumptive tax
2. STAMP DUTIES: duties on instruments between individuals
3. PROPERTY TAX: encompasses all impositions related to:
a. tenement rate
b. Right of occupancy
c. Ground rent
d. Land use charge
e. Neighbourhood improvement charge
f. Infrastructure development levy
g. Any other land-related levy/charge
4. ROAD TAX: motor vehicle registration, renewal & administration fees
5. HAULAGE LEVY: this Harmonizes;
a. Single haulage fee
b. Single inter-state road tax sticker
c. All other forms of road stickers, tickets/emblems
6. ECONOMIC DEVELOPMENT LEVY: this levy is intended to be annual payment by businesses operating in the state. It harmonises:
a. Business premises
b. Economic Development Levy
c. Development Levy
d. Environmental fees
e. Social service contribution levy
f. mining, milling, & quarrying fee
g. Emission control tax
h. Produce sales tax
i. Fire service fee
j. Motor park levy (for state developed parks)
k. Borehole fee
7. LOCAL GOVERNMENT LEVY: this levy is intended to be annual payment by businesses operating in and LGA. It harmonises:
a. Shop & kiosk fees
b. Slaughter slab fee
c. Motor park levy (for LG developed parks)
d. Domestic animal fee
e. Bicycle, truck, canoe, wheeled-barrow and cart fees
f. Merriment/road closure levy
g. On/off liquor license fees
h. Radio/Tv license fee
i. Vehicle radio license fees
8. USER CHARGE:
a. Wrong parking charges
b. Marriage, birth/death registration fees
c. Naming of street registration fees
d. Signage & mobile advert
e. Public convenience, sewage/refuse disposal fees
f. Customary burial ground permit fees
g. Religious places establishment permit fees
h. Wharf loading charge
9. DAILY TICKETING:
a. Market levy
b. Animal trade tax
c. Slaughter/abbatoir fee
d. Transporters’ tickets
Sir Okon said: “The tax reforms has brought a lot of good news to the people. One, what used to be multiple taxes, about 46 taxes between the the state and local governments, have been harmonised, under the bills, into nine taxes for all the state of the federation, not only Akwa Ibom”
He said the laws exempt low-income earners made up of individuals earning below N800,000 annually from tax payment and will also encourage increased investment, simplify tax processes and reduce compliance costs to attract businesses.
Describing the old tax laws which came to an end on December 31st, 2025 as archaic and obsolete, Okon added, “Again, five items namely food, health, education, rent, and mass transportation have been put at zero rate.
“That should bring a lot of relief to households. Then, there is digitalised tax administration to reduce human interference, and promote efficiency, transparency and accountability”
