Stephen Ukandu, Umuahia
The Abia State Internal Revenue Service (AIRS), has launched a Withholding Tax Platform (WHT-P), in its bid to boost Withholding Tax collection in the state.
This is part of the efforts of the service to meet its N100.6 billion target in the 2025 budget.
Introducing the WHT-P app to the AIRS staff, representative of Appmart, Mr Mike Opoko, who developed the platform, said the app would help digitalise tax collection in the state.
He explained that Appmart, a Central Bank of Nigeria (CBN) licensed company, had through its subsidiary, Revotax Ltd, developed several advanced systems that have supported various governments in Nigeria and West Africa with revenue collection.
In a remark, the Appmart Chief Technical Officer (CTO), Chief Anthony Umejiofor, said the new AIRS Withholding Tax (WHT) platform was aimed at improving tax compliance.
“Concerned persons can register or log in at wht.abia.tax and validate their Abia State Social Identity Number (ABSSIN), upload and review their WHT schedule, and make secure payments online or at any bank,” he said.
He added that “the platform automates all Withholding Tax Payments, provide a seamless process for taxpayers in Abia State to handle their withholding tax and make payments, listing among its other key benefits, as allowing taxpayers to redeem their credit notes and apply them to reduce their income tax liabilities in the state.”
In a remark, the State AIRS Executive Chairman, Professor Udochukwu Ogbonna, said that Withholding Tax was imposed on those rendering services and or doing contracts in the state.
According to him, the percentages of the tax payable by the affected contractors or service providers are statutorily deducted at source by the Ministries and agencies that awarded them these contracts.
“These contract-awarding Companies or Agencies are automatically mandated by the Law, to deduct and remit 5 or 10 percent cost of the contracts as applicable, to Government while paying the contractors.
According to the AIRS boss, the essence of creating the WHT-P is to trace the Withholding Tax payers to give them their Full Tax Assessment.
“So what we did today was to create this platform so that all the Withholding Taxes paid are monitored by the AIRS to ensure that the final/full Tax is paid/collected,” he said.
Professor Ogbonna identified resistance to pay when due, illegal collection, banks reluctance/delays in remitting what is due to government, etc as some of the challenges of AIRS.
“We have had to summon banks on this scenario stressing the state government’s resolve not to tolerate their further delays in remitting collected Withholding Taxes to government.”
Professor Ogbonna warned against tax defaulting, while directing potential tax payers to access the AIRS website for the right information and thus free themselves from the statutory consequences of defaulting.
Speaking also, AIRS Director of Taxes, Mr Chijioke Okoronka, said WHT would help address some of the challenges of tax collection and help shore up the state’s IGR.
