Abia State Government defends tax administration reforms

The Abia State Government has defended its ongoing tax administration reforms, stating they are intended to improve transparency, accountability, and the ease of doing business rather than increasing tax rates.

Commissioner for Information Okey Kanu clarified that the reforms aim to make tax processes “more transparent, traceable, auditable, automated and taxpayer-friendly” by eliminating revenue leakages and arbitrary practices. A key component involves integrating revenue collection systems, such as at vehicle licensing offices, to remove cash handling and ensure proper remittance to the government.

Officials emphasized that there has been no increase in land, vehicle, or Pay-As-You-Earn taxes. Regarding Tax Clearance Certificates, the government stated it is moving toward proper income assessment in line with national frameworks, replacing previous practices of flat-rate payments. The administration noted it will use lawful verification to determine taxable income rather than arbitrarily classifying bank transactions as taxable.