FG Bans Cash Tax Collection, Roadblocks Nationwide
The Federal Government has introduced a new policy that bans cash tax collection and roadside revenue enforcement across Nigeria.
Officials announced the directive in Abuja. The policy forms part of the government’s updated tax reform strategy.
Authorities say the move will stop illegal tax practices and improve accountability in revenue collection.
Government Announces New Tax Regulations
Officials unveiled the policy during the signing of the Presumptive Tax Regulations and Implementation Guidelines at the Federal Ministry of Finance.
The Executive Secretary of the Joint Revenue Board, Mr. Olusegun Adesokan, explained the goal of the reform.
He said the government wants to eliminate unregulated tax collection, especially at the state and local government levels.
“All cash-based tax collections by revenue authorities are now prohibited,” Adesokan said.
“Setting up roadblocks for tax enforcement is also no longer allowed.”
Why the Government Banned Cash Tax Collection
The government believes the reform will strengthen Nigeria’s tax administration.
Officials say the policy will also reduce harassment of traders and small business owners. Many informal businesses have complained about illegal levies and forced payments.
According to Adesokan, the new rules will promote fairness and transparency in the tax system.
“This reform focuses taxation on prosperity rather than putting pressure on the poor,” he said.
Small Businesses to Enjoy Tax Relief
The new framework also introduces tax relief for nano and small businesses.
Businesses that earn ₦12 million or less annually will not pay tax under the presumptive tax system.
Adesokan said the policy aims to support small enterprises and encourage economic growth.
“Our nano and small businesses earning ₦12 million or less each year are exempt from this tax system,” he explained.
New Tax Rate for Informal Businesses
Businesses that earn above the exemption threshold will fall under a simplified tax structure.
Under the new framework, the government will apply a flat one percent tax on turnover for eligible informal businesses.
Officials say the system will simplify tax compliance and reduce disputes between traders and revenue authorities.
A Step Toward Transparent Tax Administration
The Federal Government believes the reform will transform tax administration across Nigeria.
By banning cash tax collection and roadblocks, authorities hope to curb corruption and restore trust in the revenue system.
Experts say the policy could also improve compliance as businesses gain more confidence in the tax process.
