While expressing his compassion and empathy on the hardship faced by then poor citizens 9f the the state, the Oyo State Governor, Seyi Makinde, declined to assent to the Presumptive Tax Bill passed by the state House of Assembly. The governor's decision came in response to the current economic hardships faced by citizens, stating that the bill would impose an additional burden on the already struggling populace.
Governor Makinde, speaking at the flag-off ceremony for the upgrade of Samuel Akintola Airport to international standards, emphasized his commitment to policies that support the poor. "Anything that will put money in the pocket of the people is what I am interested in. At this time, I’m not interested in any policy that will empty their pockets. I’ll continue to fight poverty and not fight the poor," he said.
Despite rejecting the bill, the governor commended the Assembly's effort to boost the state's Internally Generated Revenue (IGR) but stressed that now is not the right time for its implementation.
The Presumptive Tax Bill, 2023, which passed through the Oyo State House of Assembly last week, outlines specific tax rates for various small enterprises including barbers, photographers, mechanics, fruit sellers, and others whose incomes cannot be easily ascertained due to the lack of formal financial records. The bill seeks to impose a tax on these informal businesses as a way to expand the state’s tax base.
The bill prescribes varying rates for different categories, with barbers required to pay between N3,000 to N10,000 annually, while bricklayers are taxed N10,000 to N30,000. The legislation also imposes penalties for late payments and offers a 2% rebate for those who file their tax returns on time. Taxpayers will receive a clearance certificate upon full payment of their assessments.
Governor Makinde’s rejection highlights his administration’s priority of reducing the financial pressure on ordinary citizens, particularly at a time of widespread economic uncertainty. He reiterated his administration’s focus on improving the living standards of the people while ensuring sustainable economic policies.
The Speaker of the Oyo State Assembly, Debo Ogundoyin, present during the ceremony, noted that the bill was designed to formalize the taxation of the informal sector, which constitutes a large part of the state's economy. However, the Governor’s decision means the bill will not be implemented for the foreseeable future.
This rejection has been met with mixed reactions from citizens, with many praising the governor's pro-people stance, while others believe it could delay efforts to improve the state’s revenue base.
