The Lagos State House of Assembly is considering a new bill designed to streamline the state’s complex tax system and put an end to the collection of levies by unauthorized groups, including transport unions.
A public hearing was held on Friday by the Assembly’s Finance Committee to discuss the proposed legislation, titled “A Bill for a Law to Enact the Lagos State Harmonised Taxes and Levies (Approved List for Collection) Law.” The bill aims to consolidate over 100 different taxes and clearly define who is authorized to collect them.
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If passed, the law would restrict tax and levy collection to official government authorities, effectively banning individuals, unions, and other associations from setting up roadblocks to demand payments or membership dues from residents and businesses.
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The proposed legislation outlines strict penalties for violators. Any person or group found erecting a roadblock to collect taxes, fees, or union dues could face a fine of N5 million, a three-year prison sentence, or both.
According to the bill, “The relevant tax authority shall do all such things as may be necessary and expedient for the assessment and collection of taxes and levies, including the deployment of technology for assessment, collection, and other activities related to tax administration.”
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The bill also seeks to centralize the collection of daily fees, such as market charges, transport tickets, and abattoir levies. The Lagos State Internal Revenue Service (LIRS) would become the primary collecting agency, with the revenue shared between the state and local governments.
Furthermore, the legislation empowers residents to legally challenge any unlawful taxes or levies imposed by collectors or government bodies.
Speaking at the hearing, Assembly Speaker Mudashiru Obasa, represented by Deputy Speaker Mojisola Meranda, emphasized the importance of public participation in lawmaking. “Governance becomes more effective when citizens are given the opportunity to contribute directly to policies and laws that affect their daily lives,” he stated.
Obasa explained that the bill is a direct response to long-standing concerns about multiple taxation. “One of the major objectives of this bill is to harmonise taxes and levies in order to eliminate duplication, confusion, and multiple taxation, which have over the years become major concerns for residents, businesses, and investors in Lagos State,” he added.
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Femi Saheed, Chairman of the House Committee on Finance, described the bill as crucial for governance and business in the state, noting that it aligns with national tax reforms and aims to create sustainable revenue streams.
Stakeholders at the event, including tax expert Ayodele Subair, praised the Assembly’s initiative, expressing support for policies that improve the business environment and public administration in Lagos.
