The Ebonyi State Commissioner for Finance and Economic Development, Leonard Uguru, has assured Nigerians that the new federal tax reform is designed to protect low-income earners while placing higher tax obligations on wealthy individuals.
Speaking during an interview in Abakaliki, Uguru described the reform as progressive and people-centred, noting that individuals earning below ₦1.2 million annually are now exempt from Pay-As-You-Earn (PAYE) tax.
According to him, the policy prioritises economic equity by ensuring that high-income earners contribute more to national revenue, while vulnerable citizens are shielded from additional financial pressure.
Uguru acknowledged that states may initially experience reduced revenue from personal income tax but explained that alternative streams such as Value Added Tax (VAT) and electronic money transfer levies would help offset the impact.
He also revealed that Ebonyi State’s Internally Generated Revenue (IGR) has improved significantly under Governor Francis Nwifuru’s administration, with the state recording over ₦2.1 billion in monthly revenue for the first time in December 2025.
The commissioner attributed the state’s financial growth to improved transparency and prudent management, adding that Ebonyi achieved a 100 percent score in the 2025 Budget Fiscal Transparency League.
He assured residents that the government would carry out public sensitisation campaigns on the tax reform while continuing efforts to block revenue leakages and attract investors to the state.
