The federal government has outlawed cash collection of taxes and the mounting of roadblocks for tax collection in the informal sector.
The directive is captured n the newly signed presumptive tax regulations and guidelines on the implementation of the tax laws, unveiled in Abuja.
Speaking at the signing ceremony, executive secretary of the Joint Revenue Board (JRB), Olusegun Adesokan stated that the framework is structured to cut out informal, coercive and fragmented tax practices, particularly at the subnational level.
“It bans all forms of cash collection by tax authorities. It also bans the mounting of roadblocks for the collection of taxes,” he said.
Adesokan stated that the regulations are geared towards bestowing transparency and equity in tax administration, especially within the commerce and informal sectors.
Under the framework, nano and small businesses with an annual turnover of N12 million and below are exempted from tax under the presumptive regime.
“The framework also introduces a tax rate of one per cent of turnover on all other categories of informal businesses, while encouraging the use of technology-driven payment platforms,” Adesokun said.
He said the guidelines provide a uniform structure for subnational governments to tax the commerce sector and integrate operators into the formal system through a tax identification platform.
Also speaking at the ceremony, minister of finance and coordinating minister of the economy, Wale Edun noted that the signing marks the transition from legislative approval to implementation of tax reforms enacted in 2025 and early 2026.
“With the signing of these regulations, we are transitioning from regulation to structured implementation of the tax reforms.
“We will expand the tax base, not raising taxes, but expanding so that each bears his rightful contribution to the common cause,” Edun said.
