CSOs back Akwa Ibom tax reform bill, seek key amendments

Etim Ekpimah

Civil Society Organisations (CSOs) in Akwa Ibom State have endorsed the proposed Akwa Ibom State Internal Revenue Service Bill but urged the State House of Assembly to amend some provisions to strengthen transparency, institutional independence and the protection of taxpayers’ rights.

The groups made the call after participating in a stakeholders’ meeting organised by the House of Assembly Committee on Appropriation and Finance to consider the proposed legislation titled, “A Bill for a Law to Establish the Akwa Ibom State Internal Revenue Service for Efficient Administration and Collection of Internally Generated Revenue and for Matters Connected Therewith.”

In a joint memorandum signed by representatives of six civil society organisations, the groups described the bill as a comprehensive framework that could improve the administration and collection of internally generated revenue in the state. However, they expressed concern that several provisions concentrate excessive powers in the office of the governor and the proposed revenue service while providing inadequate safeguards for taxpayers.

The organisations commended the bill for requiring professional qualifications for members of the Governing Board and for providing a statutory funding framework and annual audit provisions. They also welcomed the government’s efforts to align the state’s tax administration with the Federal Government’s tax reform policy.

Despite these commendations, the CSOs recommended significant amendments to strengthen the proposed law.

Among their major recommendations is the expansion of the Governing Board to include representatives of the organised private sector, relevant professional bodies such as the Chartered Institute of Taxation of Nigeria (CITN) and the Institute of Chartered Accountants of Nigeria (ICAN), as well as civil society organisations, to ensure broader stakeholder participation.

The groups also called for the removal of provisions empowering the governor to dissolve the board or remove its members at discretion, arguing that such powers undermine the institutional independence of the revenue service. They recommended that removals should be based on clearly defined legal grounds, subject to a fair hearing and approval by the House of Assembly.

Similarly, they urged lawmakers to amend provisions requiring the governor’s approval for the remuneration of board members and the employment and remuneration of staff, insisting that such matters should fall within the authority of the board, subject to legislative oversight.

The memorandum further recommended that the secretary and legal adviser of the service should be employed directly by the board rather than seconded from the Ministry of Justice, to eliminate potential conflicts of interest.

On taxpayers’ rights, the organisations expressed concern over provisions allowing the service to reverse tax decisions without procedural safeguards. They proposed that affected taxpayers should receive prior notice, be allowed to be heard, receive written reasons for any reversal and retain the right to appeal.

The CSOs also opposed the provision requiring taxpayers to deposit 20 per cent of disputed tax assessments before appealing to the high court, describing it as an unconstitutional barrier to justice that would disproportionately affect low-income earners, small businesses, farmers and traders.

They further recommended stricter safeguards governing tax investigations, including judicial oversight before arrests, and called for prior notice before tax officers enter commercial premises, except where such notice would frustrate investigations.

The groups also criticised the proposed N500 penalty for attempting to bribe tax officials, describing it as grossly inadequate. They recommended increasing the fine to at least N500,000 or a minimum one-year prison term, or both, to serve as an effective deterrent.

Other recommendations include mandatory publication of audited accounts, legislative oversight of annual financial reports, transparent procedures for compounding tax offences, statutory whistleblower protection for tax officers and taxpayers, and a provision requiring all revenues collected under the law to be paid directly into the Treasury Single Account (TSA).

They also urged lawmakers to require all policy directives issued by the governor to the revenue service to be in writing and laid before the House of Assembly to promote accountability and prevent political interference.

The CSOs concluded by commending the Akwa Ibom State Government and the House of Assembly for pursuing reforms aimed at strengthening the state’s internally generated revenue framework.

They expressed confidence that incorporating their recommendations would produce a more transparent, accountable and taxpayer-friendly law capable of promoting public confidence in tax administration while supporting sustainable revenue generation.

Additionally, the memorandum was jointly signed by Otuekong Franklyn Isong, Director of the Centre for Human Rights and Accountability Network (CHRAN); Barr. Clifford Thomas, Convener of the Akwa Ibom Human Rights Community (AKHRC); Dr Victor David, Executive Director of Vital Partners for Development (VIPaD); Comrade Ime Udo, Executive Director of the Coordinating Centre for Human Rights (CCHR); Comrade Uduak Ekarika, State Chairman of the Committee for the Defence of Human Rights (CDHR); and Comrade Thomas Mbuotidem, Director of the Foundation for Civic Education, Human Rights and Development Advancement (FORCEHRDA).