FG Introduces New Tax Policy For Small Businesses
The Federal Government has introduced a new tax policy aimed at integrating small businesses into the formal tax system.
The policy, known as the Presumptive Tax Framework, targets traders, artisans, and other micro-enterprises across the country. It is designed to simplify tax payment processes and eliminate abusive collection practices.
The announcement was made on Wednesday through the Federal Ministry of Finance.
According to the government, the framework will replace complicated tax procedures with a simpler and more predictable system for small business owners. Officials stated that the initiative is intended to improve tax compliance while safeguarding vulnerable entrepreneurs from harassment.
Speaking on the development, the Executive Secretary of the Joint Revenue Board, Olusegun Adesokan, said the framework clearly prohibits the use of force in tax collection.
“It also bans the mounting of roadblocks for the collection of taxes,” he said.
He explained that tax officials will no longer be permitted to stop traders on highways or in markets to demand levies. Instead, all collections will follow structured and lawful procedures.
The Minister of Finance, Wale Edun, stated that the new tax regime is designed to support the growth of small businesses rather than penalise them.
“The objective of presumptive taxation is not to overburden small businesses, but to provide a fair, simple, and predictable framework for tax compliance.
“Our fiscal strategy is anchored on expanding the tax base rather than increasing tax rates. Inclusion drives sustainability,” he said.
Edun made the remarks during the official launch of the scheme in Abuja on Tuesday.
Government officials added that the framework will help reduce multiple taxation and curb illegal levies imposed by local revenue agents. They noted that small businesses remain the backbone of Nigeria’s informal economy and should be encouraged instead of intimidated.
The initiative forms part of broader reforms aimed at boosting national revenue without raising tax rates. Authorities expressed confidence that wider participation in a simplified tax system will strengthen long-term economic stability.
