Oyo State Governor, Seyi Makinde, has declined to sign the Presumptive Tax Bill recently passed by the state House of Assembly, citing concerns over the economic burden it would place on the people.
The governor made this decision public on Wednesday, noting that the bill, if implemented, would exacerbate the hardship faced by the state’s poor population.
Makinde expressed that the ongoing economic crisis has left many residents “hungry and angry,” and emphasised that his administration’s priority is to alleviate poverty rather than impose policies that might worsen the people’s plight.
“Anything that will put money in the pockets of the people is what I am interested in. At this time, I’m not interested in any policy that will empty their pockets,” Makinde stated while speaking at the flag-off of the upgrade of Samuel Akintola Airport to international standards. He stressed that the bill would not be implemented at this time, although he praised the House of Assembly for its initiative aimed at boosting the state’s internally generated revenue (IGR).
Last Thursday, the Oyo State House of Assembly passed the State Presumptive Tax Bill, 2023, which outlines the imposition, administration, and collection of taxes from individuals and entities whose income cannot be easily determined due to a lack of formal financial records. The bill targets various small and informal businesses, including artisans, barbers, bricklayers, hairdressers, and others.
The law proposed a range of presumptive tax rates, with adult wear boutique owners liable to pay between N10,000 and N50,000 annually, barbers between N3,000 and N10,000, and bricklayers between N10,000 and N30,000, among other groups. The bill also introduced penalties for failure to pay, with a 10% per annum fine, while offering a 2% rebate to those who file tax returns on time.
Despite acknowledging the potential for increasing the state’s revenue, Governor Makinde emphasised that his administration’s focus remains on poverty alleviation, and for now, the Presumptive Tax Bill will not be enacted.
