Enugu Ends Multiple Taxation as Governor Mbah Signs Landmark Revenue Reform Bill

Victor Itodo Abuh February 4, 2025

Enugu Ends Multiple Taxation as Governor Mbah Signs Landmark Revenue Reform Bill

Enugu State Governor, Peter Mbah, has signed a groundbreaking bill into law to streamline tax collection and eliminate multiple taxation. The law, officially named the Enugu State Internal Revenue Service (Establishment and Consolidation of Revenue Administration) Law, 2025, creates a centralized system for tax administration, ensuring a single collection point for businesses, market traders, and other taxpayers.

At the signing ceremony held at the Government House in Enugu on Tuesday, Governor Mbah hailed the law as a major milestone in improving the Ease of Doing Business and positioning Enugu as a leading investment destination.

“I recall several times that I have engaged the business community, the organised private sector, and the market women. They have always complained about multiple taxation. People coming from everywhere with different types of government receipts to ask them to pay tax. That will end from today,” he said.

The new law consolidates state and local government revenues, ensuring each tier of government receives its due share, similar to the existing Land Use Charge and Value Added Tax (VAT) system.

Mbah further clarified that the Enugu State Internal Revenue Service (IRS) will now operate autonomously, free from bureaucratic hurdles.

“The Enugu State Inland Revenue Service is now able to act as an autonomous institution of the state government. It also means that they can now set targets and try to meet those targets the same way you run a business. It means that they now have the powers to hire and fire their employees. So, we are increasingly making the Revenue Service a professional body,” he added.

He emphasized that the increase in the state’s Internally Generated Revenue (IGR) was not due to higher tax rates but rather an expanded tax net, reduction of revenue leakages, and the deployment of technology for efficient collection.

“Let me be clear, we have not increased any tax in Enugu State. What we have essentially done and which is impacting our revenue growth is expansion of the tax net. We have also made sure that monies that were collected in cash before now are now adequately captured and paid into the state coffers,” he stated.

The Speaker of the Enugu State House of Assembly, Hon. Uchenna Ugwu, described the bill as a game-changer for revenue collection and administration.

“One, it is going to improve the Ease of Doing Business. It is also going to improve the IGR of the state and also block all the loopholes in revenue collection and administration. It is a very good gift to the people of Enugu State,” he noted.

With this reform, Enugu State aims to boost investor confidence, eliminate fraudulent tax collection practices, and create a more transparent and efficient revenue system.