The Oyo State House of Assembly has passed into law the State Presumptive Tax Bill 2023, which prescribes the imposition, administration, and collection of presumptive tax on individuals and entities whose income cannot be ascertained due to lack of financial records.
Businesses captured for presumptive tax rates include artists and sign writers, barbers, bricklayers, carpenters, grinding mills, gas refilling depots, hairdressers, horticulturists, photographers, plank sellers, plumbers, welders, mechanics, block makers, saw millers, book stores, typing studios.
Under the law, titled, “Oyo State Negotiated Presumptive Tax Rate,” owners of adult wear (boutique) are liable to pay a minimum of N10,000 and maximum of N50,000 per annum; Barbers will pay between N3,000 and N10,000 per year; artists and sign writers will pay between N5,000 and N50,000; bicycle repairers will pay between N2,000 and N10,000; bookshop/stationary stores to pay a minimum of N10,000 and maximum of N20,000; bricklayers to pay from N10,000 to N30,000; sellers of building materials will pay between N15,000 and N50,000; furniture makers to pay from N25,000 to N40,000; carpenters will pay between N10,000 and N35,000; gas refillers to pay between N25,000 and N45,000 while photographers will pay between N2,000 and N5,000.
Also, plumbers will pay between N2,000 and N10,000; welders, from N5,000 to N20,000; fruit sellers to pay between N1,000 and N5000; mobile phone sellers and repairers, between N2,500 and N4,000; shoemakers to pay between N500 and N2,000; dry cleaners, from N1,000 to N2,500; block makers to pay between N15,000 and N25,000; vulcanisers, from N2,500 and N7,500; mechanics/welders/rewires to pay between N1,500 and N5,000; and plank sellers, between N2,500 and N10,000.
According to the law, a taxable person who fails or neglects to pay tax, shall be liable to pay the sum and a penalty equal to 10 per cent per annum while those who maintain up-to-date records and file returns within the stipulated period shall be granted a rebate of two per cent of the tax payable.
The law also stipulated that persons subject to presumptive tax shall file returns on or before 90 days from the commencement of each year, while upon payment of all tax assessments, the taxable persons shall be issued a Tax Clearance Certificate.
Meanwhile, Oyo State Governor, Engr Seyi Makinde, has said he will not implement the presumptive tax bill passed by the House of Assembly, saying there’s hunger in the land.
The governor stated this while performing the ground breaking ceremony of the upgrade of Ibadan Airport to intertantional standard, on Wednesday.
Makinde said although he will sign the bill into law, the situation across the country will make its implementation impossible, noting that implementing it will add to the hardship and pain of the people.
He explained that people are hungry and angry as a result of the current economic situation in the country, adding that the law would inflict more pain on the poor masses in the state.
“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,” Makinde said.
