The Federal Government has outlawed the mounting of roadblocks for tax and levy collections nationwide and unveiled a new Presumptive Tax Framework (PTF) designed to integrate millions of small and informal businesses into the formal economy.
The announcement was made in Abuja during the signing ceremony of the framework at the Ministry of Finance. Executive Secretary of the Joint Revenue Board (JRB), Olusegun Adesokan, said the policy aims to simplify tax compliance for traders, artisans and other micro enterprises.
“It also bans the mounting of roadblocks for the collection of taxes,” Adesokan stated, adding that the framework equally prohibits cash payments by taxpayers.
“Apart from encouraging the use of technology for payment of taxes and cash collection, it bans all forms of cash collection by tax authorities,” he said.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the PTF as a central pillar of the tax reform agenda of President Bola Ahmed Tinubu’s administration.
According to Edun, the new system introduces a simple and equitable approach that enables informal sector operators to meet tax obligations without complex accounting procedures. Assessments, he explained, will be based on clear indicators such as business category and turnover levels rather than detailed financial records.
“The objective of presumptive taxation is not to overburden small businesses, but to provide a fair, simple and predictable framework for tax compliance,” Edun said.
He emphasised that the government’s fiscal strategy is focused on broadening the tax net instead of raising tax rates.
“Our fiscal strategy is anchored on expanding the tax base rather than increasing tax rates. Inclusion drives sustainability,” the minister said.
Adesokan disclosed that businesses with annual turnover of up to ₦50 million would be exempted under the framework.
“It ensures that our nano and small businesses with an annual turnover of 50 million naira are exempted from tax,” he said, noting that the exemption would allow struggling entrepreneurs to retain capital for growth before eventually entering the tax net.
For informal businesses above the exemption threshold, the framework introduces a simplified turnover-based tax rate aimed at easing compliance while expanding the national tax base.
Edun added that the regulations, issued in collaboration with the Joint Revenue Board, will ensure uniformity and transparency in tax administration across federal and state levels.
“These regulations provide clarity to tax authorities and protect taxpayers from arbitrary assessments. The system will be transparent, rules-based and nationally consistent,” he said.
He further noted that strengthening non-oil revenue through a broader tax base would enhance government capacity to invest in infrastructure, security and social programmes.
“A stronger, more diversified revenue base enhances the government’s capacity to fund infrastructure, social investment, security and economic growth,” Edun said.
Describing the reform as a milestone, Adesokan added: “This revolution is another demonstration of President Bola Ahmed Tinubu’s commitment to taxing prosperity and not poverty.”
