A bill to expand the tax net of Oyo State Government and consequently increase the State’s internally generated revenue scaled 2nd reading on Thursday in the Oyo State 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.
While deliberating on the bill, the lawmakers described it as the right step towards increasing and achieving the revenue targets of 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 of 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 provisions of the bill apply 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 if 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.