Oyo To Expand Tax Net

A bill to expand the tax net of Oyo State government and consequently increase the state’s Internally Generated Revenue scaled second reading in the state’s House of Assembly.
The bill tagged “Oyo State Presumptive Tax Bill, 2024” provides for the imposition, administration and collection of taxes on individuals and entities whose income cannot be ascertained due to lack of financial records.
Deliberating on the bill, the lawmakers described it as the right step towards increasing and achieving the revenue targets of the Oyo State government.

The speaker, Oyo State House of Assembly, Hon Adebo Ogundoyin said the bill was necessary in order not to overburden the taxpayers with increased taxes.

‘’The bill is about broadening the tax base of Oyo state. There is the need for our dear state to step up measures to get more people to pay tax thereby increasing revenue from taxes.” Oyo Speaker said
The provision of the bill applies to taxable people not covered under the Pay-As-You-Earn (PAYE) system, those whose income cannot be ascertained, and for those whose financial records of business undertaking are not kept in a manner to enable proper assessment.

According to the bill, the tax payable under the presumptive tax law shall be determined based on the category of trade, businesses, vocation and professions of individuals, while the mode of payment shall be prescribed by the board which is also made provision for in the bill. The bill will also prescribe penalties for non-payment of the presumptive tax.