Categories: News

Enugu introduces ₦36,000 flat levy for traders as IGR rises to ₦7.4bn

The Enugu State Internal Revenue Service (ESIRS) says traders and informal sector operators in the state now pay a flat annual levy of ₦36,000 under a newly harmonised tax structure designed to eliminate multiple taxation and improve revenue collection.

The Executive Chairman of ESIRS, Ekene Nnamani, disclosed this on Thursday during a stakeholders’ sensitisation session on the state’s new tax law held at the African Heritage Institution in Enugu.

According to him, the reform was introduced to address long-standing complaints of multiple levies imposed on traders and transport operators by different government agencies.

He explained that before the harmonisation, operators were subjected to charges from various bodies, including state and local government agencies, at different points.

Under the new arrangement, Nnamani said the ₦36,000 annual payment covers several obligations, including presumptive tax, environmental charges, business premises fees, signage fees, and market-related dues.

He added that once the payment is made, traders are no longer subjected to additional collections within the markets.

The ESIRS chairman also highlighted the introduction of a technology-driven collection system that integrates payments through a unified digital platform, describing it as a “one-stop-shop” for tax administration.

In the transport sector, he said similar reforms have been implemented for commercial tricycle operators, who previously faced multiple levies across different local government areas.

Under the new system, he explained, operators make a single payment that is automatically shared among relevant agencies through a digital allocation process.

Nnamani said the reforms have significantly boosted revenue generation from the informal sector, noting that internally generated revenue rose from less than ₦100 million to ₦7.4 billion within a year.

He also said the state has extended harmonisation to the formal sector through a consolidated demand notice that captures all annual tax obligations of businesses in a single document.

Responding to criticisms of the new tax framework, Nnamani dismissed claims of ambiguity, saying misunderstandings had been fuelled by inaccurate reports.

He added that updates to the tax law have been reflected in a revised gazette.

On enforcement, he warned that all business operators in the state would be required to register formally, stressing that government must have accurate data on economic activity.

He also clarified that any financial benefit received in connection with holding public office would be treated as taxable income rather than a gift.

Also speaking at the event, tax expert Mark Abani warned that non-compliance could attract penalties, including fines, interest charges, and possible prosecution.

He said defaulters may be liable to an additional 10 per cent of the tax due, alongside accrued interest, and noted that tax authorities retain the legal power to inspect premises and recover outstanding liabilities where necessary.

The stakeholders’ engagement formed part of the state government’s broader push to strengthen a digital, data-driven tax system aimed at improving compliance, reducing leakages, and boosting internally generated revenue.

LUKMAN ABDULMALIK

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