Chairman of the Enugu State Internal Revenue Service (ESIRS), Emmanuel Nnamani has described as untrue claims that the rising cost of house rent in the coal city state is owing to heavy taxation.

He also described as unfounded allegation that the state is imposing arbitrary levies.

According to him, the taxes and revenue in Enugu State remain within the limits of the law.

Nnamani said these on Thursday during a press briefing at the agency’s office in Enugu.

On high rents and taxation, he said there was no direct correlation.

“One cannot link it to taxation as erroneously claimed. The trend is a nationwide challenge driven by demand and supply, not state tax policies.

“For instance my personal experience with housing inflation dating back to 2015, long before the current administration began enforcing tax laws.

“The shift from rental developments to private, residences with gates have reduced housing stock, increasing rental pressure.

“If we had more high-rise residential buildings, rent would drop.

“Government can’t regulate rent prices, but it can build to increase supply.

“Plans are already underway through the Ministry of Housing and Housing Development Authority to construct mass housing and student hostels near institutions like ESUT and IMT, thereby freeing up city accommodation for the general public,” he stated.

He also affirmed that the ESIRS “do not impose any levy outside what the law permits.”

“Tax administration in the state is guided primarily by the Personal Income Tax Act (as amended), which empowers the ESIRS to collect personal income tax through two principal means: Pay-As-You-Earn (PAYE) for individuals in formal employment, and Direct Assessment for those outside the formal sector.

“While compliance is generally seamless among those in formal employment, enforcement mechanisms—including legal action—are sometimes necessary to ensure compliance from others,” Nnamani stated.

He further revealed that appropriate mechanisms had been put in place to foster trust and eliminate guesswork, just as he addressed claims that Enugu is too expensive.

“I acknowledge the perception but it is attributed to demand-pushed inflation, particularly in construction materials.

“Enugu sources granite from Ebonyi and rods from other states, and that the multiple infrastructural projects ongoing simultaneously—such as 270 Smart Schools, 260 T2 Health Centres, and hospitality infrastructure—have temporarily inflated demand.

“Once these projects are completed, demand for materials will fall and prices will stabilise I assure you.

“On a broader context, Enugu’s tax regime is not an outlier, but consistent with federal laws implemented across all states. We’re not here to compete with other states.

“Our duty is to apply the law fairly and ensure that our people prosper.

“With clarity, candour, and a call for public understanding, Nnamani’s briefing painted a picture of a state working to formalise its revenue base, ease the burden on its citizens, and chart a path to sustainable growth,” he declared.