Makinde Delays New Tax Law to Avoid Burdening Oyo Residents Amid Economic Hardship

Governor Seyi Makinde of Oyo State has announced that he will not implement the recently passed Presumptive Tax Bill, citing the ongoing economic challenges and widespread hardship faced by the people.

The bill, which was passed by the Oyo State House of Assembly, seeks to impose taxes on individuals and businesses with unascertainable income due to a lack of financial records.

Speaking at the groundbreaking ceremony for the upgrade of the Samuel Ladoke Akintola Airport in Ibadan, Makinde confirmed that while he will sign the bill into law, its implementation would be delayed to avoid adding to the financial strain on the populace.

“There’s hunger in the land. Anything that will put money in the pockets of the people is what I am interested in so they can use it where the shoe pinches,” Makinde stated.

“At this time, I’m not interested in any policy that will empty their pockets. I’ll continue to fight poverty, not the poor.”

Makinde commended the House of Assembly, represented by Speaker Hon. Debo Ogundoyin at the event, for their initiative in passing the bill, which aims to increase the state’s internally generated revenue. However, he emphasized that the timing was not right for the tax’s implementation given the current economic realities.

The Oyo State Presumptive Tax Bill, 2023, covers a wide range of small businesses, including barbers, hairdressers, carpenters, photographers, plumbers, and others, with tax rates varying based on the nature of the business. For example, barbers are liable to pay between N3,000 and N10,000 annually, while block makers will be taxed between N15,000 and N25,000.

The law also includes provisions for penalties for non-payment, as well as rebates for businesses that maintain up-to-date financial records.

Despite the delay in its implementation, Makinde’s stance on the presumptive tax bill reflects his administration’s focus on alleviating poverty and supporting the people during difficult times.