JRB bans roadblocks for tax collection, unveils new presumptive tax rules

The Joint Revenue Board (JRB) has outlawed the use of roadblocks for tax collection across the country as part of the rollout of new Presumptive Tax Regulations.

The regulations were unveiled by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, as part of efforts to streamline tax administration and protect small businesses from harassment.

The Executive Secretary of the JRB, Olusegun Adesokan, explained that the new framework provides a harmonised and coordinated approach to tax collection nationwide, ensuring that businesses are not disrupted in the process.

Exemptions and 1% Turnover Tax

Under the new rules, nano and small businesses with annual turnover of ₦12 million and below are exempted from the presumptive tax. Other informal businesses above that threshold will pay a flat 1% tax on turnover.

The framework is designed to protect small enterprises, encourage growth, and broaden the tax base in what officials describe as a fair and transparent manner.

Speaking at the launch, Edun said the reforms aim to formalise small businesses and integrate them gradually into the structured economy.

“These regulations ensure transparency, fairness, and economic inclusion. They formalize a pathway for small businesses to grow and eventually enter the formal economy, contributing to sustainable national growth,” he said.

Growth Targets and Economic Vision

The minister noted that Nigeria’s Gross Domestic Product (GDP) recorded over four per cent growth in the last quarter of 2025, adding that the administration is targeting seven per cent growth in the near term.

He linked the tax reforms to the broader economic ambition of achieving a $1 trillion economy by 2030.

Edun further stated that tax administration under the new system would be coordinated across federal, state, and local governments, with oversight mechanisms to ensure fairness and compliance. An Ombudsman framework, he added, will monitor implementation and address complaints.

“This is a growth-oriented system designed to create jobs, support small and medium enterprises, and promote investment from Nigerians at home and in the diaspora,” the minister said.

The move to ban roadside tax enforcement is expected to bring relief to traders and transporters who have long complained about multiple taxation and extortion on highways.