FENRAD Calls for Progressive Taxation in Abia, Urges Inclusion of Informal Sector in Policy Dialogue

The Foundation for Environmental Rights, Advocacy & Development (FENRAD) has urged the Abia State Government to embrace a progressive tax regime rather than implementing regressive policies that disproportionately burden low-income earners and small-scale businesses.

In a press statement released on Monday, FENRAD commended the Otti-led administration for streamlining tax collection and reducing touting through digital systems and harmonised enforcement. However, the rights-based organization expressed concern over the impact of existing rates on the informal sector, especially artisans, traders, transport workers, and other vulnerable groups.

“Taxation must be equitable. A progressive tax system—where individuals and entities pay according to their earning capacity—is a hallmark of a just society,” said Nelson Nnanna Nwafor, Executive Director of FENRAD.

FENRAD called for the active engagement of stakeholders in the informal value chain—including market associations, tricycle operators, roadside mechanics, and petty traders—in the ongoing tax reform dialogue.

The group noted that inclusive consultation would help tailor tax policies to reflect the realities of the state’s economic landscape.

“Imposing uniform or flat-rate taxes without considering income variability risks pushing many informal actors further into poverty or out of business,” Nwafor added.

The group further recommended that the government publish clear, accessible tax schedules in local languages and invest in tax education campaigns to improve public trust and voluntary compliance.

FENRAD Recommended the following

• Adopt a tiered taxation model based on income brackets.
• Exempt or subsidize low-income earners and micro-enterprises.
• Establish community tax dialogue forums across LGAs.
• Expand ABSSIN registration with support systems for informal workers.
• Provide social benefits or incentives for compliant taxpayers (e.g. access to microcredit, health insurance).

FENRAD reaffirmed its support for responsible taxation as a tool for development but insisted that such systems must be just, transparent, and people-centered.