By Aaior K. Comfort

Governor Seyi Makinde of Oyo State announced on September 18, 2024, that he would not implement the recently passed Presumptive Tax Bill, citing the severe economic hardship affecting citizens. Speaking at the groundbreaking ceremony for the upgrade of Samuel Ladoke Akintola Airport in Ibadan, Makinde emphasized that the bill, which seeks to impose taxes on individuals and businesses with uncertain incomes, would exacerbate the financial strain on residents.

Makinde expressed deep concern that implementing the bill under current economic conditions would burden the already struggling populace. He stated, “Anything that will put money in the pocket of the people is what I am interested in so they can use on where the shoe pinches. At this time, I’m not interested in whatever policy that will empty their pockets. I’ll continue to fight poverty and not fight the poor.”

Details of the Presumptive Tax Bill

The Oyo State House of Assembly passed the Presumptive Tax Bill, 2023, aimed at bolstering the state’s internally generated revenue. The bill mandates taxes on individuals and businesses without formal financial records, covering professions such as barbers, carpenters, and photographers. Tax rates vary, with specific minimum and maximum amounts set for each category:

– Boutique owners: N10,000 to N50,000 annually.
– Barbers: N3,000 to N10,000.
– Carpenters: N10,000 to N35,000.
– Photographers: N2,000 to N5,000.

Failure to pay taxes incurs a penalty of 10 percent per annum, while those maintaining proper records and filing returns on time can receive a 2 percent rebate. Taxpayers must file returns within 90 days of each year’s commencement and obtain a Tax Clearance Certificate upon full payment.

Acknowledgment of Legislative Efforts

While declining to implement the bill, Governor Makinde acknowledged the Oyo State House of Assembly’s efforts to enhance the state’s revenue. He commended their initiative but maintained that the timing was inappropriate given the prevailing economic climate.

Future Prospects

Makinde’s decision underscores his commitment to alleviating economic hardships in Oyo State. He continues to prioritize policies aimed at poverty alleviation and economic empowerment, steering clear of measures that could further strain residents’ finances.