Lagos moves to harmonize
taxes
…Collects N94.85bn in 2007
By EMEKA OKOROANYANWU
Thursday, April 24, 2008
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Photo:
Sun News Publishing |
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The Lagos State Government is about to harmonize taxes paid
in the state with a view to halting incidences of multiple
taxations. A bill to this effect is now before the State House
of Assembly.
When eventually passed, the law will stipulate the type of
tax and the amount which both the state and local councils
are entitled to collect.
Executive Chairman of the Lagos State Internal Revenue Service
(LIRS), Mr. Tunde Fowler told Business Editors in Lagos that
the law would include the process by which local councils
would be collecting taxes, saying that the era of multiple
taxation will soon be over.
Mr. Fowler appealed to Lagosians to imbibe the culture of
paying tax as the revenue generated are used for the growth
of infrastructure in the state.
He said that Lagos State would assume the status of a mega
city by 2015 and that huge resources are required to upgrade
and build necessary infrastructure such as roads, drainages,
water works, including the provision of educational and health
services to the people.
Fowler said the states Internal Revenue Services (LIRS) has
taken up the challenge of increasing the Internally Generated
Revenue (IGR) of the state through the adoption and implementation
of various strategies.
He revealed that LIRS efforts have paid off with IGR increasing
from N30 billion in 2003 to N94.5 billion in 2007, a growth
of about 315 per cent. He also noted that tax collected in
the first quarter of this year has hit N31.48 billion saying
that more efforts are being made to increase collection.
Fowler said that a number of strategies have been put in place
by the LIRS, since 2003 to increase tax receipts. Such strategies
he enumerated include the use of e-TCC, accelerated tax audits
of past years, direct bank lodgments with the linkage of over
1, 200 branches of banks on line and the close monitoring
of revenue through generation of timely management reports.
Other strategies being employed include the use of task forces,
introduction of self-assessment filling system for individuals,
increased taxpayers education and physical presence in major
markets.
Mr. Fowler announced that necessary machinery has been put
in place to ensure quick prosecution of tax defaulters as
this would act as a deterrent for future defaulters.
He called on all Lagos residents to fulfill their statutory
obligations by paying their taxes as at when due saying the
government has instituted an award for corporate bodies and
individuals who complied with the personal Income Tax Act.
The objective of the award was to encourage full voluntary
compliance and prompt payment of taxes.
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