Oyo State Governor, Seyi Makinde, has declined to assent to the Presumptive Tax Bill recently passed by the state’s House of Assembly, citing concerns over the impact it could have on the state’s most vulnerable citizens.
According to The PUNCH, Makinde, while speaking at the flag-off ceremony for the upgrade of the Samuel Akintola Airport to international standards, emphasized that his administration is focused on alleviating poverty, not exacerbating it.
“I’m not interested in any policy that will take money out of the people’s pockets at this time. People are hungry and angry due to the current economic reality in the country,” he stated. “I’ll continue to fight poverty, not the poor.”
The governor acknowledged the intention behind the bill, which is aimed at boosting the state’s Internally Generated Revenue.
However, he stressed that its implementation at this time could cause undue hardship to residents, particularly those in low-income professions.
The Presumptive Tax Bill, 2023, passed by the Oyo State House of Assembly last week, proposes the imposition, administration, and collection of tax from individuals and businesses with unascertainable income due to lack of financial records.
Professions and enterprises targeted by the bill include barbers, carpenters, bricklayers, hairdressers, photographers, and more, with varying tax rates based on the nature of their businesses. For example, boutique owners would pay between N10,000 and N50,000 annually, while fruit sellers would be taxed between N1,000 and N5,000.
The bill also outlines penalties for failure to comply, including a 10 per cent annual penalty for those who neglect to pay the tax. Conversely, those who maintain proper records and file returns within the stipulated period are eligible for a two per cent rebate.
Makinde expressed appreciation for the efforts of the state legislature in formulating the bill but reiterated that his priority is to implement policies that directly benefit the people.
“At this time, anything that will put money in people’s pockets is what I’m interested in, not anything that will empty their pockets,” he added.
Despite the governor’s decision to withhold his assent, the bill represents a broader effort to enhance Oyo State’s financial stability through improved tax collection mechanisms. However, its fate remains uncertain as the economic challenges facing the state’s residents take precedence.
