• Wednesday, April 24, 2024
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Oyo widens tax base, sensitises traders, artisans on new law

No cause for alarm on next Olubadan, Makinde assures residents

As part of efforts to widen its tax base, the Oyo State Government, is partnering the traders association to collect value added tax (VAT) from informal traders.

The state has enacted a new tax law, which was signed by Governor Seyi Makinde on December, 28, 2023.

Read also: Oyo revises mandatory tax clearance fee downward

The new tax law targets those in the informal sector that do not have records of their sales like vulcanizes, tailors, among others.

Sensitising traders and artisans on the newly introduced tax law, before its full implementation, Ademola Ojo, Commissioner for Trade, Industry, Investment and Cooperatives, said the state has embarked on its boldest reform agenda in decades, which includes the review of its tax law.

He stated that, “Oyo State has one of the lowest tax collection rates. This year, the government intends to ensure that over 47 percent of our budget will come from revenues”.

Ojo added that the state has embarked on the registration of the artisans and traders, saying that this will ease the state’s tax drive from the informal sector.

He added that they stand to benefit a lot from the government in incentives such as grants, loans and others.

The commissioner also asserted that data collation of the artisans and traders, which is a standard procedure, will erase the issue of double taxation.

He commended the Oyo State Board of Internal Revenue for collaborating with the Ministry of Trade Industry Investment and Cooperatives on the enactment of the new tax law in the state.

Ojo also commended artisans and traders in Oyo State for complying with the government decisions, urging them not to relent in doing the needful as it will be to their advantage.

The sensitisation program, which was witnessed by Oyo State Market Leaders Council, Ministry of Trade, Industry, Investment and Cooperatives and Oyo State Board of Internal Revenue took place at the conference room of the Ministry of Trade.

Femi Adebowale Awakan, chairman, Oyo State Board of Internal Revenue, said those in the informal sector are the set of people now grouped under the presumptive tax law.

He said that PAYE has taken care of salary earners, while the new tax law will take care of informal businesses.

He added that for presumptive tax, the charges can be as low as N1,000 to N5,000 per year, while there are business owners that pay direct assessment tax of N10 million in a year.

Awakan urged the traders and artisans to comply with the tax law as the government does not have any other business or source of funds than to collect taxes.

“If we pay, we get better infrastructure than what we have now because the focus of Governor Seyi Makinde is to leave Oyo State better than he met it”.

Dauda Abiodun, president, Oyo State Market Leaders Council, pledged the readiness of members to work hand in hand with the government, saying “the move is a good one”.