Oyo Governor Seyi Makinde Rejects Presumptive Tax Bill, Citing Hardship on the Poor

Oyo State Governor, Seyi Makinde, on Wednesday, declined to sign into law the Presumptive Tax Bill passed by the State House of Assembly, stating that the bill would impose an additional burden on the already struggling populace. The governor, while recognising the economic challenges facing Nigerians, expressed a commitment to alleviating poverty rather than exacerbating it through taxation.

“Anything that puts money in the pockets of the people is what I am interested in,” Makinde said during the flag-off ceremony for the upgrade of Samuel Akintola Airport to international standards. “At this time, I’m not interested in any policy that will empty their pockets. I’ll continue to fight poverty, not the poor.”

The Presumptive Tax Bill, passed by the Oyo State House of Assembly last week, aims to introduce and administer taxes on individuals and enterprises whose incomes are difficult to ascertain due to a lack of financial records. The bill targets various informal sector trades including barbers, bricklayers, photographers, mechanics, and small shop owners. For instance, adult wear boutique owners would pay between N10,000 and N50,000 annually, while bricklayers would be charged from N10,000 to N30,000.

While acknowledging the Assembly’s efforts to boost the state’s Internally Generated Revenue, Makinde made clear his unwillingness to impose new taxes during a period of economic hardship. “I appreciate the initiative, but I will not implement this bill for the time being,” he stated.

The Presumptive Tax Bill was introduced as a way to formalisetax collection from individuals and small businesses operating without proper financial records. However, the governor stressed the need for caution, explaining that many Oyo residents were grappling with the adverse effects of national economic instability, including inflation and unemployment.

The bill specifies penalties for those who fail to pay the prescribed taxes, with a 10 per cent annual penalty on outstanding sums. On the other hand, businesses that maintain proper financial records and file tax returns within the stipulated timeframe would receive a 2 per cent rebate.

Makinde’s rejection of the bill underscores his administration’s focus on poverty reduction and the need for policies that ease, rather than compound, the financial burdens on Oyo’s residents.