The clarification regarding salary deductions due to the migration of the tax rate was recently given at the Government House, Umuahia. During his monthly briefing with journalists, Otti explained that the government had conducted investigations in response to complaints by some civil servants regarding deductions from their salaries.
The results of the investigation reveal that the shift from using the 2018/2019 tax rate to the current tax rate in calculating taxes on salaries was responsible for the observed difference. It was brought to light that the old tax rate of 2018/2019 was previously used, while a new tax law for 2021/2022 is now in force.
Otti stressed that it is wrong to think that anyone is embezzling salaries, as the money leaves the government account and is credited to the accounts of the beneficiaries. He also dismissed concerns about wage disparities in some parts of the country, explaining that these were in fact tax deductions made at the prevailing rate.
The governor also addressed the issue of minimum wage, revealing that a committee had been set up to look into the matter, pending further clarification from the Federal Government. He noted that the announcement of a minimum wage of N70,000 would impact on other wages, adjusting them accordingly.
On the distribution of Abia’s share of the Federal Government’s rice trucks, Otti stressed the importance of equitably distributing provisions to the people. He emphasized the government’s commitment to actively addressing the issue of the new minimum wage and seeking practical solutions within the limited resources of the state.
This transparency and open communication with citizens illustrates the government’s commitment to fair and accountable governance. These initiatives aimed at clarifying wage issues and ensuring a fair distribution of resources highlight the importance of effective communication between authorities and citizens.