Akwa Ibom Assembly Seeks Harmonisation As Multiple Taxes Threaten SMEs

The Akwa Ibom State House of Assembly has called on various tax authorities in the state to address the pressing issue of multiple taxation, noting that the unregulated tax regime fraught with corruption has impacted negatively on the growth of Small and Medium Enterprises (SMEs), and made a case for proper harmonisation of the policy

In the same vein, the 26-member lawmaking chamber, urged local governments’ tax authorities to consolidate and harmonise tax collections and remittances to a single agency.

Also, the Assembly during the plenary chaired by the Speaker, Elder Udeme Otong, charged the Akwa Ibom State Board of Internal Revenues (AKIRS) to “foster a tax-friendly environment, as well as launch awareness campaigns for small businesses regarding their tax obligations.”

Rt. Hon. Asuquo Nana Udo, representing Ikono State Constituency, who sponsored the motion, emphasised that “the burden of multiple taxation primarily impacts micro, small and medium enterprises, which form the backbone of the state’s economy.”

He notes that “such taxation practices could diminish the entrepreneurial spirit, economic competitiveness, and hinder ease of doing business in the state.”

He listed different categories of taxes and levies borne by SMEs in the state to include Personal Income Tax (PIT), Value-Added Tax(VAT), and other sundry fees and charges, and lamented what he described as “the cumulative effects on businesses.”

The Deputy Speaker, Rt. Hon. KufreAbasi Edidem (Itu), expressed concern over the survival challenges faced by SMEs in the state due to the pressure of excessive taxation, and stressed the need for urgent intervention for them to breathe within a seamless business atmosphere for profits maximisation.

Recognizing the urgent need immediate intervention, the Speaker, Elder Otong, decried the adverse effects of the haphazard tax policy and, therefore assigned the Joint Committees on Appropriations and Finance, along with Public Account, to “collaborate with relevant tax collection agencies for an in-depth study and mandated them to report back to the House within one week before the resume sitting on December 7.