Oyo State Governor Seyi Makinde has called on members of the Joint Tax Board (JTB) and other key stakeholders in the revenue generation sector to adopt a compassionate approach when integrating the informal sector into the tax system.
He gave the remark on Monday during the opening of the 157th JTB meeting held in Ibadan, where he emphasised the importance of understanding and collaboration over enforcement.
Themed, “Taxation of the Informal Sector: Potentials and Challenges,” the meeting presented a platform for addressing tax-related issues and developing effective tax strategies for both state and federal governments.
Governor Makinde highlighted the informal sector as a vital component of the local economy and urged stakeholders to leverage technology to engage this sector more effectively.
He stressed the necessity of creating partnerships with informal businesses, advocating a strategy that prioritises understanding and cooperation rather than coercion.
“We must find ways to draw the informal sector into our tax net by fostering trust and collaboration,” he remarked, noting the potential economic benefits of such engagement.
Earlier, Chairman of the JTB and Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zach Adedeji, echoed the sentiments, warning against imposing additional tax burdens on vulnerable populations.
He urged participants to focus on strategies that would formally integrate the informal sector before considering any taxation efforts.
In his address, Chairman of the Oyo State Internal Revenue Service, Femi Awakan, highlighted the significant strides made under Governor Makinde’s administration to enhance the state’s Internally Generated Revenue (IGR).
He expressed confidence that, with the lessons learned from Oyo’s experience, no challenge is insurmountable when it comes to expanding the tax net.
In his remark, Secretary of the JTB, Dr. Olusegun Adesokan, assured attendees that the two-day meeting would yield productive discussions aimed at crafting a comprehensive framework to benefit Nigeria’s economy.
He expressed optimism that the collaborative efforts would lead to actionable strategies that address the unique challenges posed by the informal sector.
The ongoing discussions at the JTB are expected to pave the way for a more inclusive tax system that recognises the importance of the informal sector in Nigeria’s economic landscape.
