The Lagos State Government says it has commenced a process to extend tax payment obligation to domestic workers and artisans in the state.
Executive Chairman, Lagos State Internal Revenue Service, Mr. Olufolarin Ogunsanwo, stated this during a press conference on Tuesday.
He said, “We have identified three categories of tax payers in the informal sector. These are market men and women; artisans – micro, small and medium scale enterprises – and household domestic staff.”
He also said LIRS would tap other sources such as consumption tax from hotel occupancy, withholding tax on contracts, rent and royalties to boost Internally Generated Revenue.
Ogunsanwo said the government had commenced the process of overhauling its informal sector operations with a view to easing voluntary compliance by tax payers.
He added that the state had approved the upgrading of the informal sector operations to a full directorate.
According to him, the state is introducing a new payment platform by taking payment portals to tax payers for their convenience.
“We are leveraging on technology to offer multi-modal payment portals including, but not limited to PoS, mPay and online, without sacrificing the traditional payment portals at the bank,” he said.
The Attorney General and Commissioner for Justice, Mr. Adeniji Kazeem, said the government would apply the relevant laws to ensure that more Lagos residents voluntarily paid their taxes.
He warned that tax evaders and defaulters would be prosecuted.
The Commissioner for Finance, Dr Mustapha Akinkunmi, said the state generated about N24.5bn from IGR in January.
Akinkunmi said as a result of reduction of federal transfers to states including Lagos, the government was looking inwards to secure sustainable ways of increasing its revenue profile and plugging leakages.
According to Akinkunmi, the LIRS contributed 79 per cent to the state’s IGR in 2015, which equates to 56 per cent of the state’s total revenue, including federal transfers, adding that revenue is expected to continue on an upward swing, driven by strong tax collection.