Tinubu Government Unveils New Presumptive Tax Rules

The Federal Government, led by President Bola Ahmed Tinubu, has unveiled a new tax collection system aimed at bringing small businesses and informal sector operators into Nigeria’s tax net. According to Ireporter Online, the initiative, named the Presumptive Tax Framework, is designed to simplify tax compliance for traders, artisans, and micro-enterprises across the country.

The framework introduces a streamlined tax structure to make it easier for businesses operating outside the formal economy to meet their tax obligations. Under the system, operators will be able to pay taxes through a simplified mechanism, reducing bureaucratic hurdles that have historically hindered compliance.

Executive Secretary of the Joint Revenue Board, Olusegun Adesokan, emphasized that the framework strictly prohibits the use of roadblocks by tax officials for revenue collection. “It also bans the mounting of roadblocks for the collection of taxes,” he stated, noting that the move is expected to eliminate the practice of officials stopping traders or transporters on highways to demand levies.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the policy is intended to create a fair and predictable tax system for small businesses. “The objective of presumptive taxation is not to overburden small businesses, but to provide a fair, simple and predictable framework for tax compliance,” he explained at the launch of the scheme in Abuja on Tuesday.

Edun further stated that the government’s fiscal strategy focuses on expanding the tax base rather than increasing tax rates, adding, “Our fiscal strategy is anchored on expanding the tax base rather than increasing tax rates. Inclusion drives sustainability.”