Lagosians are slowly getting used to having a voice and knowing the
government is willing to listen and not only look into their request
but act upon it and change the law to make it fair. On July 5th 2010
there was a newspaper article about Lagos commercial shop owners
complaining over the random levies imposed on them, insisting that it
is double taxation.
The shop-owners and artisans condemned the conduct of the officials
who stormed the shops and insisted the owners pay a new levy of N2500,
or have their shops closed. Some other areas visited were Igando-
Ikotun, Isolo, Egbe-Idimu, and Ejigbo. The exercise was carried out by
officials of the Lagos State Internal Revenue Service (LIRS) and the
Lagos State Council of Tradesmen and Artisan (LASCOTA).
Currently, shop owners pay ₦2,500 as tax to the state, through the
LIRS, but the additional levy of ₦2,500 brings the amount to N5,000
annually. Two receipts were issued to the shop owners for the new
levy; one is written LASCOTA for ₦2000; and another, a payment of N500
for identity card from the State Treasury Office.
Less than ten days after, Governor Babatunde Raji Fashola signed into
law a bill that is expected to effectively eliminate multiple
taxations in Lagos State. The bill, recently passed by the state's
legislature, has 15 sections and one schedule which contained the 16
levies collectible by the local councils and the administration of the
levies. The schedule to the law listed all the 16 levies that local
governments can collect, thereby eliminating inexplicit charges that
are forcefully collected.
The law excluded motorists from the payment of Radio and TV licence by
limiting the collection to residential apartments alone. However, it
means Lagos residents will henceforth pay to obtain the domestic
animal licence before they can have a pet. Annual levies will be
combined on a single assessment notice in order to harmonise all the
levies into a singular payment.
The law is of public interest because it solves a problem that has
long been a thorn in the flesh of Lagos State. It will sanitize the
system and lay to rest the issue of multiple taxation and use of
touts. Mr. Fashola proposed the bill after listening to the complaints
of people and the need to demonstrate that the administration is
serious in addressing the complaints of the people, especially because
of the misgivings arising from activities of touts who do not have our
mandate.
The law establishes a State Joint Revenue Committee, comprising local
council chairmen and state officials, which will annually fix the
rates of the approved levies which may vary depending on the
cosmopolitan nature of each local council. From now on, a chart
listing the approved levies and rates must be conspicuously displayed
at the revenue office of each local council, and any local government
official or approved revenue agents must be clearly identified with
name badge. Penalty for collection of levies without remittance,
touting and collection of rates higher than prescribed ranges from
₦500, 000 fine to 3 years imprisonment.
The administrations swift response to the public is one of the
characteristics that set it apart from others.
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