The Abia State Government has dismissed reports that it has introduced a heavy tax regime in the state, insisting that residents, traders and businesses will not be subjected to arbitrary taxation.

The government also denied imposing excessive fees on politicians and business owners seeking to obtain their tax clearance certificates.

The clarification followed allegations by some traders and opposition parties that residents were being subjected to multiple and burdensome taxes.

Speaking with journalists in Umuahia on Monday after the State Executive Council meeting presided over by Governor Alex Otti, the Commissioner for Information, Okey Kanu, said the administration had taken steps to eliminate arbitrary tax collection practices.

Kanu disclosed that the government had banned multiple tax collection points in the state, while stressing that the Abia State Internal Revenue Service lacked the authority to unilaterally increase tax rates.

He explained that the government's policy was not to arbitrarily tax funds or payments entering taxpayers' bank accounts.

Rather, he said, the government would use lawful assessment and verification processes to determine which portions of such payments constituted taxable income.

Also speaking, the Chairman of the Abia State Board of Internal Revenue, Uche Elekwachi, said the board had not increased existing taxes but was enforcing tax laws already in place.

According to him, the board had introduced new systems designed to improve tax compliance, strengthen transparency and prevent revenue leakages.

Elekwachi also disclosed that some individuals allegedly operating as fake tax agents had recently been arrested in Umuahia for defrauding traders.

He said the suspects had been taken to court to face prosecution.

The state government maintained that its ongoing tax reforms were focused on improving revenue administration and accountability rather than imposing additional financial burdens on residents.