Nigeria: Oyo Assembly passes presumptive tax bill into law

PHOTO

Oyo State House of Assembly, on Thursday, passed into law the State Presumptive Tax Bill, 2023, which provides for the imposition, administration, and collection of presumptive tax on individuals and entities whose income cannot be ascertained due to lack of financial records.

Specifically, it takes care of those not covered under the Pay-As-You-Earn or direct assessment provisions of the revenue administration law of the state or those whose financial records of business undertaking are not kept in a manner to enable proper assessment of income tax payable to be readily ascertainable.

Those businesses captured for various presumptive tax rates include artists and sign writers, barbers, bricklayers, carpenters, grinding mills, gas refilling depots, hairdressers, horticulturists, photographers, plank sellers, plumbers, welders, mechanics, block makers, saw millers, book stores, typing studios.

Under the section of the law titled: “Oyo State Negotiated Presumptive Tax Rate,” owners of adult wear (boutique) are liable to pay a minimum of N10,000 yearly and maximum of N50,000; barbers, from N3,000 to N10,000; artists and sign writers from N5,000 to N50,000; bicycle repairers, between N2,000 and N10,000.

Others captured are bookshop/stationary stores to pay a minimum of N10,000 and maximum of N20,000; bricklayers from N10,000 to N30,000; sellers of building materials from N15,000 to N50,000; furniture makers, N25,000 to N40,000; carpenters are to pay between N10,000 and N35,000; gas refilling sellers between N25,000 and N45,000; photographers between N2,000 and N5,000; plumbers between N2,000 and N10,000.

The list of those to pay presumptive tax also include welders, from N5,000 to N20,000; fruit sellers from N1,000 to N5000; sales and repairs of handset, between N2,500 and N4,000; shoemakers between N500 and N2,000; laundry from N1,000 to N2,500; block makers between N15,000 and N25,000; vulcanisers from N2,500 and N7,500; mechanic/welder/rewire are to pay between N1,500 and N5,000; plank sellers between N2,500 and N10,000.

A taxable person who fails or neglects to make payment of the tax due shall be liable to pay the sum and a penalty equal to 10 per cent per annum while those who maintain up-to-date records and file returns within the stipulated period shall be granted a rebate of two percent of the tax payable.

As contained in the law, persons subject to presumptive tax shall file returns on or before 90 days from the commencement of each year, while upon payment of all tax assessments, the taxable persons shall be issued a Tax Clearance Certificate.