FG Unveils Presumptive Tax Framework for Small Businesses, Bans Roadblock Collections

 

The Federal Government has introduced a new Presumptive Tax Framework aimed at expanding the tax net to cover small businesses, while prohibiting the use of checkpoints for revenue collection.

The announcement was made on Wednesday via the official X account of the Ministry of Finance.

The policy targets traders, artisans, and other micro-enterprises, offering what officials describe as a simplified and predictable tax payment system designed to enhance compliance without imposing undue burdens.

Speaking on the initiative, Executive Secretary of the Joint Revenue Board (JRB), Mr. Olusegun Adesokan, stated that the framework expressly forbids the use of roadblocks by tax officials.

“It also bans the mounting of roadblocks for the collection of taxes,” Adesokan said.

Minister of Finance, Wale Edun, explained that the regime is structured to create a fair and transparent taxation process for small-scale operators.

“The objective of presumptive taxation is not to overburden small businesses, but to provide a fair, simple, and predictable framework for tax compliance,” Edun said at the inauguration ceremony in Abuja on Tuesday.

“Our fiscal strategy is anchored on expanding the tax base rather than increasing tax rates. Inclusion drives sustainability.”

The framework forms part of the government’s broader fiscal reforms aimed at improving revenue generation, curbing informal tax practices, and strengthening transparency in tax administration.