Lagos State Governor, Babajide Sanwo-Olu, has advocated for broader inclusion of Micro, Small and Medium Enterprises and high-net-worth individuals in the country’s tax net.
He recently revealed that such vital inclusion will tackle growing tax evasion and aid revenue collection.
Speaking recently during the opening ceremony of the 27th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria in Abuja, the Governor urged sub governments to lead the way when it comes to the implementation of key reforms, rather than waiting for the Federal Government to be at the forefront.
According to his Special Adviser on Taxation and Revenue, Ogungbo Abdul-Kabir Opeyemi, Sanwo-Olu wants state governments to commit to updating laws, adopting tech solutions, investing in data analytics, and developing human capital to take full advantage of the benefits the reforms offer.
“The clause(s) that puts a cap on income of employees at N800,000 per annum, before it can be subjected to Personal Income Tax, requires deliberate strategies to ensure taxpayers hiding in the MSME and start-up sectors are brought into the tax net and intensify effort on Direct Assessment drive for high net worth individuals to forestall the trend of tax evasion as witnessed across the country today.
It is imperative that as sub-nationals, we not only embrace but also lead the implementation drive,” he said.
Babajide revealed that Lagos State’s recent internally-generated revenue milestone of N1tn in 2024 is as a result of his government’s digital reforms and citizen-friendly approach to tax compliance.
Announcing the deployment of AI chatbots for engaging Lagosians, integrating data analytics, and creating a harmonised platform via the Lagos Revenue Portal to enhance transparency, the governor stated that the importance of fiscal reforms to national development cannot be overemphasised.
“Our payer-centric system successfully built in conveniences and transformed how taxpayers fulfil their obligations without leaving their comfort zones. This greatly promoted voluntary compliance, hence the N1tn modest IGR stride achieved by Lagos State Internal Revenue Service in the 2024 fiscal year.
These elements are critical to realising the full potential of our tax reform efforts, enhancing fiscal capacity, and contributing meaningfully to Nigeria’s overarching goal of attaining a $1tn economy,” he added.
Folami David writes on trends and pop culture. He is a creative writer, and he is passionate about music and football.
