Abia State Governor, Dr. Alex Otti, has introduced a new digital tax system aimed at eliminating fraud and intermediaries in revenue generation. The system, launched on Monday, will also integrate free medical insurance schemes for all commercial vehicle drivers and riders of Keke and Okada, while maximizing the state’s revenue potential.
According to Chief Press Secretary to the Governor, Kazie Uko, the new digital system will not only strengthen tax collection but also promote economic growth and entrepreneurship in the state. By simplifying tax compliance procedures and eliminating barriers for businesses, the initiative aims to encourage formalization, stimulate investment, and empower entrepreneurs to focus on the growth and expansion of their ventures, ultimately leading to job creation and economic prosperity.
The digitalized tax regime aims to block leakages and eliminate fraud and intermediaries, unlocking the true potential of the state’s tax system to maximize revenue for development projects. The increased revenue will enable the government to invest in infrastructure development, education, healthcare, and other essential sectors that will uplift the lives of the people of Abia State.
Governor Otti emphasized that the introduction of the free medical insurance scheme is a fulfillment of his campaign promise to provide affordable healthcare for all segments of society. The new digital tax system focuses on sanitizing revenue generation in the transport sector and markets. It includes the Permit to Operate Tickets for transporters and the Innovative Traders Tax Payment for traders in market areas.
The digital system promotes transparency and ease of compliance by introducing enumeration and easy payment platforms, including the use of USSD and wallet services. It eliminates middlemen and reduces the risk of extortion, while strengthening tax compliance, transparency, and the ease of doing business in Abia State. The system provides commercial transport operators with options such as daily, weekly, and monthly schemes, ensuring a legally defined framework and environment for businesses to operate within.
The launch of the new digital tax system in Abia State is expected to enhance revenue generation, combat fraud, and promote economic development, benefiting both the government and the people of the state.
