The Federal Government has introduced a new tax collection policy aimed at broadening the tax base to include small and micro-enterprises, while eliminating exploitative enforcement practices.
The announcement was made by the Ministry of Finance in a statement released on Wednesday. The policy document, titled Presumptive Tax Framework, is designed to simplify tax compliance for traders, artisans, and other small-scale operators who often function outside the formal tax system.
Under the new framework, tax obligations for eligible businesses will be assessed using a simplified method rather than complex profit-based calculations. The goal is to create a predictable and transparent system that encourages voluntary compliance without placing excessive administrative burdens on micro-entrepreneurs.
Speaking at the inauguration of the scheme in Abuja, the Executive Secretary of the Joint Revenue Board (JRB), Mr. Olusegun Adesokan, clarified that the policy expressly prohibits the use of roadblocks or checkpoints for tax enforcement. He stated that mounting roadblocks for the purpose of collecting levies is banned under the new system, signaling a shift away from coercive practices that have long drawn criticism from small business owners.
Minister of Finance, Wale Edun, explained that the presumptive tax regime is not intended to increase pressure on small businesses but to foster fairness and simplicity in tax administration. According to him, the framework provides a structured and predictable pathway for compliance, enabling micro-enterprises to operate with greater certainty.
He further emphasized that the government’s fiscal strategy focuses on expanding the tax net rather than raising tax rates. By bringing more participants into the formal system, the administration aims to enhance revenue sustainability without imposing additional financial strain on existing taxpayers.
The new policy represents a reform-oriented approach to domestic revenue mobilization, balancing enforcement with inclusivity while addressing longstanding concerns about informal and arbitrary tax collection methods.
