Enugu State governor, Peter Mbah, has announced plans to establish a committee to review allegations of tax increase in the state.

He explained that his administration had only widened the tax net without raising the tax rate.

Mbah said the rise in the state’s Internally Generated Revenue (IGR) followed the introduction of e-payment and other technologies to block revenue leakages.

He blamed what he described as false narratives about taxation in Enugu on beneficiaries of the old corrupt revenue system.

The governor made the remarks during a media chat with journalists at the Government House, Enugu, during the week.

Enugu State, according to the National Bureau of Statistics, recorded N180.05 billion IGR in 2024, up from N37 billion in 2023, ranking fifth nationwide.

Lagos State topped the list with N1.26 trillion, followed by Rivers with N317.3 billion, FCT with N282.3 billion, and Ogun with N194.9 billion.

But addressing the allegations of excessive taxation, Mbah said, “The taxation thing that you hear is actually misplaced.

“But I have also committed to setting up a committee that will include market unions, civil society organisations, non-governmental organisations, and other relevant groups, so they can review what is happening in our tax space and come up with a report.”

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He clarified that his administration lacked the legal authority to raise tax rates.

“Even under the laws, we are not able to do that. The issue of personal income tax or company income tax is legislated by the National Assembly. Those rates were not set by the Enugu State House of Assembly,” he said.

Mbah added that the only change made was blocking leakages and eliminating cash collections by touts.

“Payments are now made directly to state coffers through e-payment. The era of people harassing traders, drivers, and Keke operators with paper receipts is gone,” he said.

He noted that the reforms had displaced entrenched interests who were now fighting back.

“Once you initiate such policies, those benefiting from the old system will resist change,” he said.

The governor stressed that despite the falsehood being spread, his administration remained open to public feedback.

“As a leader, we must listen. I believe we need to probe further to know if there are things we are not aware of. That’s why I said we will constitute the committee, and it will be done pretty soon,” he stated.