The Oyo State Government, on Tuesday sensitized traders and artisans on the newly introduced tax law, before its full implementation.
The sensitization program which was witnessed by Oyo State market Leaders Council, Ministry of Trade, Industry, Investment and cooperatives and Oyo State Board of Internal Revenue took place at the Conference room of the Ministry of Trade.
The Commissioner for Trade, Industry, Investment and cooperatives, Honourable Ademola Ojo said the state is partnering with a traders association to collect value added tax (VAT) from informal traders in the state.
He said this is part of a push by the Seyi Makinde-led administration to widen the tax base in the pace-setter state.
Ojo added that the State has embarked on its boldest reform agenda in decades, which includes the review of its tax law.
He stated that “Oyo state has one of the lowest tax collection rate. This year, government intends to ensure that over 47% of our budget will come from revenues.
Mr. Ojo added that the State has embarked on the registration of the Artisans and Traders, saying that this will ease the State’s tax drive from the informal sector.
He added that they stand to benefit a lot from the government such as Grants, loans and other advantages.
The Commissioner also asserted that data collation of the Artisans and Traders which is a standard procedure, will erase the issue of double taxation.
He commended Oyo State Board of Internal Revenue for collaborating with the Ministry of Trade Industry Investment and cooperatives on the enactment of the new tax Law in the State.
Honourable Ademola Ojo also commended Artisans and Traders in Oyo State for complying with Government decisions, urging them not to relent in doing the needful as it will be to their advantage.
The Chairman, Oyo State Board of Internal Revenue, Honourable Femi Adebowale Awakan said that the newly enacted tax Law was signed by the Executive Governor of Oyo State, Engineer Seyi Makinde on December, 28th 2023.
He said the law targets those in the informal sector that don’t have records of their sales like Vulcanizers, Tailors among others.
He said these set of people are now grouped under the presumptive tax Law.
He said that PAYE has taken care of salary earners, while the new tax law will take care of entrepreneurs who own informal businesses.
He added that for presumptive tax, the charges can be as low as One thousand naira to Five thousand naira per Year, while there are business owners that pay direct assessment tax of Ten million Naira in a year.
Awakan urged the Traders and Artisans to comply with the tax payment Law as Government does not have any other business or source of fund than to collect taxes.
“If we pay, we get better Infrastructure than what we have now because the focus of Governor Seyi Makinde is to leave Oyo State better than he met it.”
The President Oyo State Market leaders Council, Alhaji Dauda Abiodun, pledged the readiness of members to work hand in hand with the Government, saying “the move is a good one.”
He therefore advised traders and Artisans to comply, since payment of tax has been in existence before now.