Enugu debunks tax misinformation, clarifies policies

The Enugu State Internal Revenue Service (ESIRS)  has dismissed viral social media claims about arbitrary taxation in the state as “false and misleading.”

 The agency also reaffirmed the government’s commitment to lawful, transparent tax administration and outlined reforms to streamline collections, especially in the informal sector.

 Speaking during a media briefing in Enugu, Chairman of the ESIRS, Mr. Emmanuel Nnamani, clarified that all taxes in Enugu State were guided by the Personal Income Tax Act, explaining that formal employees pay through the Pay-As-You-Earn (PAYE) system, while those in the informal sector were assessed directly.

 Nnamani disclosed that before Governor Peter Mbah assumed office in 2023, 99% of informal sector players—including market traders and transport operators—were not paying taxes due to interference by “non-state actors”.

 To address this, he explained that a consolidated ₦36,000 annual levy was introduced for market traders, covering sanitation, signage, and business premises charges, while street vendors were made to pay ₦30,000 annually, with transport operators using a daily ticketing system.

 According to him, although the law prescribes penalties for non-compliance, the state has adopted a softer ₦3,000 flat sanction to encourage compliance.

 He disclosed that a tax calculator tool was now available on the agency’s website to help residents compute their obligations.

 Answering questions on the assertions by a cross section of landlords linking high rent and cost of living to ‘high taxes’, Nnamani dismissed the claims, attributing the situation instead to housing shortages and demand-driven inflation.

 He said the government housing projects were underway to ease pressure.

 He also explained that current high prices of construction materials are due to increased demand from state infrastructure projects, adding that prices would stabilise as projects near completion.

 Nnamani concluded that Enugu’s tax regime aligns with federal laws and national standards, saying, “We apply the law fairly, not to compete, but to help our people prosper.”