The Federal Government has banned tax collection at roadblocks on highways across the country as part of its ongoing initiatives to ensure transparency and fairness in the nation’s fiscal system.
The ban of illegal taxes along the highways was announced at the launch of a new Presumptive Tax Framework (PTF) to bring small businesses and artisans into the formal tax net.
Speaking at the event, which held at Ministry of Finance in Abuja, Executive Secretary of the Joint Tax Board (JTB), Mr. Olusegun Adesokan, explained that the PTF was aimed at making tax simple for micro-enterprises.
According to him, the new rules outlaw the use of roadblocks by officials and also ban “the mounting of roadblocks for the collection of taxes.”
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In his keynote address at the forum, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, described the PTF as a key component of the present administration’s tax reform agenda initiated to broaden the national tax base while also shielding small businesses from over-taxation
Edun explained that the framework introduced a streamlined and equitable system that allows informal sector business owners to meet their tax obligations without the need for sophisticated accounting.
He maintained that the framework would help the government widen its tax base and strengthen non-oil revenue without increasing existing tax rates as well as reduce compliance costs and create a structured pathway for the government to administer tax in the informal economy.
The minister clarified: “The objective of presumptive taxation is not to overburden small businesses, but to provide a fair, simple and predictable framework for tax compliance.
“Our fiscal strategy is anchored on expanding the tax base rather than increasing tax rates. Inclusion drives sustainability”, Edun added.
