Just In : Carpenters, hairdressers, others to pay N500 to N50,000 tax yearly
Fruit sellers, carpenters, photographers, block makers, pepper sellers, pool agents, hairdressers and others in the informal sector in Oyo State are to pay between N500 and N50,000 yearly as presumptive tax.
Under the Oyo State presumptive tax system, those regarded as low-income earners are categorised along the lines of minimum, medium and maximum.
The tax payable for barbers range from N3,000 to N10,000; bricklayers, N10,000 to N30,000; plumbers, N2,000 to N10,000; hairdressers, N2,000 to N10,000; sawmillers, N5,000 to N20,000; sales and repairs of handset, N2,500 to N4,000; bookstores, N5,000 to N20,000; radio/refrigerator repair, N1,500 to N5,000 among others.
The rates are captured in the Oyo State Presumptive Tax Bill, 2023 which has passed the second reading stage at the Oyo State House of Assembly.
Those to be captured under the presumptive tax are those whose income cannot be ascertained for purposes of tax assessment, those not covered under the Pay-As-You-Earn or direct assessment, whose income for all practical purposes cannot be ascertained, whose financial records of the business undertaking are not kept in a manner to enable proper assessment of income tax payable.
In intimating members of the informal sector of the new drive for payment of presumptive tax, the state government, on Tuesday, met with the Oyo State Market Leaders Council.
At the meeting held at the Ministry of Trade, Investment and Cooperatives, Oyo State Secretariat, Ibadan, Commissioner for the Ministry, Mr Demola Ojo said the state now targeted the informal sector for taxes with recent data showing that the sector constitutes 80 per cent of the state populace.
Ojo said it was imperative for the informal sector to be better captured in the state’s tax net to prevent the state from overreliance on borrowing and federal allocation to provide governance that benefits all residents of the state.
Noting that the presumptive tax rates were minimal, he said the members of the informal sector also benefited as they were captured into the state register making them eligible for various grants.
He sought the cooperation of all business people in the informal sector while adding that the sensitisation will continue across different strata of the sector.
Speaking in the same vein, Chairman, Oyo State Internal Revenue Service, Mr Femi Awakan said the state was simply implementing a federal law to tax category of income earners and those without records of their sales.
He assured that under the presumptive tax regime, there wouldn’t be multiple taxation.
Other government officials, in their remarks, held that prompt payment of presumptive tax made getting tax clearance easy and was their contribution to get the government to serve them better.
Responding, President, Oyo State Market Leaders Council, Mr Abiodun Oladepo said the traders understood the importance of paying taxes and would continue to support the efforts of the government aimed at the progress and development of the state.
However, Mr Salaudeen Kamorudeen, a member of the council, enjoined the government to also target those ‘big men’ who evade tax and provide a system where traders don’t have to pay several taxes to consultants of the state government and then the local government.
Another member of the market leaders council, Mr Najeem Azeez called for increased sensitisation, especially regarding payment offices, officers and modes to prevent them from paying to illegal quarters.
Other provisions of the bill are that upon payment of all tax assessments, the taxable person shall be issued a tax clearance certificate though it shall be the duty of the taxable person to file annual returns.
Also, persons subject to presumptive tax shall file returns on or before 90 days from the commencement of each year, while there is an opportunity for any taxable person who disputes the category or assessment of tax to file an objection to the board stating the grounds for objection within 30days of receipt of the assessment.
While a taxable person who fails or neglects to make payment of the tax due shall be liable to pay the sum and a penalty appeal equal to 10 per cent per annum, those who maintain up-to-date records and files returns within the specified period shall be granted a rebate of two per cent of the tax payable. (Nigerian Tribune)
