The Lagos State House of Assembly has introduced a bill designed to harmonise taxes and eliminate unauthorised revenue collection by unions and other groups.
During a public hearing on Friday, lawmakers presented the “Lagos State Harmonised Taxes and Levies Law”, which aims to centralise revenue collection and curb the influence of unauthorised collectors.
Under the proposed legislation, only designated tax authorities will have the power to assess or collect revenue on behalf of the state or its local government councils.
A key provision strictly prohibits any individual, association, or union from setting up roadblocks to collect taxes, levies, or membership dues.
Violators found guilty of mounting such roadblocks could face a N5 million fine, three years in prison, or both.
The bill also mandates the use of technology to improve tax assessment and administration.
To ensure transparency, the Lagos State Internal Revenue Service (LIRS) would act as the primary collecting authority, with revenues shared between the state and local governments.
Furthermore, the law would grant citizens the right to seek legal redress if they are subjected to unlawful taxation.
The proposed law seeks to consolidate various daily charges, including market levies, animal trade taxes, slaughterhouse fees, and transportation tickets.
The State Joint Revenue Committee would determine these rates to prevent the confusion caused by multiple taxation.
Representing Speaker Mudashiru Obasa, Deputy Speaker Mojisola Meranda emphasised that the bill is a vital step toward inclusive governance.
She noted that efficient revenue collection is essential for funding critical infrastructure, such as schools, healthcare, and transportation systems.
Femi Saheed, Chairman of the House Committee on Finance, stated that the bill aligns with recent national tax reforms.
According to him, the initiative is designed to address long-standing concerns regarding multiple taxation while creating sustainable revenue opportunities for the state.
Majority Leader Noheem Adams added that the bill is critical for expanding the state’s revenue base to support essential services.
LIRS Chairman Ayodele Subair also commended the initiative, pledging the agency’s commitment to policies that support residents and businesses.
