By Udeme Hosea

The Akwa Ibom State government is set to implement a new tax regime starting January 1, 2026, aiming to provide relief to low-income households.

The new system, according to Chairman of the Akwa Ibom State Internal Revenue Service, Sir Okon Okon while educating media stakeholders on  the component of the new reforms during a media symposium at the NUJ, press center Uyo, last week said, the reforms seeks to shift the tax burden from low-income earners to high-income earners, ensuring a more equitable and transparent process.

The Chairman, highlighted the key component of the New Tax Regime to include Income Tax Exemptions for Individuals earning below  ₦1 million annually, stressing  that, they will be exempt from personal income tax.

He also announced Reduced PAYE Rates for those earning up to ₦1.7 million monthly , saying that, they will benefit from reduced PAYE rates, Zero VAT on Essentials like  Essential services and commodities like food, healthcare, education, rent, and transportation will attract zero VAT.

The chairman also mentioned Increased Revenue for Akwa Ibom state government, hinting  that, the state’s share of VAT revenue will rise from 50% to 55%, boosting its internally generated revenue.

Sir Okon  further added that , his board is  engaging stakeholders to educate the public on  the benefits of the new tax regime.

 According to Mr. Okon, the reforms will promote fiscal sustainability, transparency, accountability and will  benefit low-income households, small businesses, entrepreneurs, promote  economic growth and bring development  to the State.

Also, the Commissioner for Finance, Mr. Emem Bob, emphasized that the new tax regime will boost the state’s revenue, enabling it to fund development projects without taking loans.  Stressing that, the state government has not taken any loans since May 2023, attributing its financial stability to ongoing fiscal reforms.