The Finance Committee of the Lagos State House of Assembly has held a public hearing on a new bill designed to stop illegal tax and levy collections across Lagos State.
The proposed law aims to create a better and more organised tax system by allowing only approved government agencies to collect taxes and levies within the state.
According to the bill, unions, associations, transport groups, or any unauthorized persons will no longer be allowed to forcefully collect money from residents or business owners. The law also seeks to stop the use of roadblocks for collecting taxes, union dues, and daily levies.
The legislation, titled the Lagos State Harmonised Taxes and Levies Law, is expected to reduce multiple taxation and bring more transparency to revenue collection.
The bill explained that only recognised tax authorities would have the legal power to assess and collect taxes for the state government and local councils. It also encourages the use of technology to improve tax administration and payment systems.
Another major part of the proposal states that no ministry, agency, or local government can hand over tax collection duties to the Lagos State Internal Revenue Service without proper agreements and clear conditions.
Residents would also have the right to challenge illegal taxes or levies in court if they believe any collector or government agency is acting unlawfully.
Under the proposed law, anyone caught setting up roadblocks or illegally collecting taxes, levies, transport fees, or union dues could face a fine of up to N5 million, three years in prison, or both.
The bill also plans to organise and standardise different daily payments collected in markets, abattoirs, transport parks, and animal trading centres. Rates for these collections would be supervised by the State Joint Revenue Committee when necessary.
If the bill becomes law, the Lagos State Internal Revenue Service would become the main body responsible for collecting revenue, while the money generated would be shared between the state government and local government councils.
Speaking during the hearing, Speaker of the Assembly, Mudashiru Obasa, represented by Deputy Speaker Mojisola Meranda, said the hearing showed the Assembly’s commitment to involving citizens in governance.
He explained that public participation is important because laws work better when the people affected by them are allowed to contribute their ideas.
Obasa also noted that the proposed law would help solve long-standing problems linked to multiple taxation, confusion in revenue collection, and the burden placed on residents and businesses.
Chairman of the House Committee on Finance, Femi Saheed, described the bill as very important for economic growth, business operations, and improving government revenue.
According to him, the proposal is in line with recent tax reform efforts at the national level and would help create a stronger financial system for Lagos State.
Majority Leader of the House, Noheem Adams, also said the law would strengthen revenue generation and improve public services across the state.
Several stakeholders who attended the hearing, including Ayodele Subair, praised the Assembly for introducing the bill and promised to support policies that would improve the business environment and public administration in Lagos.