FG bans highway tax roadblocks, unveils new framework for small businesses

The Federal Government has prohibited the use of roadblocks for the collection of taxes and levies across the country.

The decision was announced on Wednesday in Abuja during the signing of a new Presumptive Tax Framework (PTF) at the Ministry of Finance.

Executive Secretary of the Joint Revenue Board (JRB), Olusegun Adesokan, said the framework expressly outlaws the mounting of roadblocks by tax officials, a practice that has drawn complaints from transport operators and small business owners.

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

The new framework is designed to simplify tax compliance for traders, artisans and other micro and small enterprises operating in the informal sector.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the initiative as part of the reform agenda of the Bola Ahmed Tinubu administration aimed at widening the tax base without raising existing rates.

Edun said the system replaces complex accounting requirements with clear indicators such as business category and turnover levels.

“The objective of presumptive taxation is not to overburden small businesses, but to provide a fair, simple and predictable framework for tax compliance,” he said.

Under the arrangement, businesses with an annual turnover of up to N50 million will be exempt from tax. Adesokan said the exemption is intended to allow nano and small enterprises to stabilise and grow before entering the tax net.

For informal businesses above the exemption threshold, the framework introduces a simplified turnover-based tax rate.

The government also barred cash collections by tax officials. According to Adesokan, all payments must be made through approved digital channels to improve transparency and accountability.

Edun said the regulations were developed in collaboration with the Joint Revenue Board to ensure alignment between federal and state tax administrations and to prevent arbitrary assessments.

He added that expanding the tax base would strengthen non-oil revenue and improve the government’s capacity to fund infrastructure, security and social programmes.

“Our fiscal strategy is anchored on expanding the tax base rather than increasing tax rates,” the minister said.