The Lagos State House of Assembly is considering a new bill aimed at restructuring tax collection across the state and stopping the activities of unions and unauthorised groups involved in revenue collection.
The proposed legislation titled Lagos State Harmonised Taxes and Levies Approved List for Collection Law seeks to centralise all tax and levy administration under officially recognised government authorities.
The bill was discussed during a public hearing on Friday before the House Committee on Finance, where lawmakers and stakeholders examined its implications for governance, business operations, and revenue generation.
If passed, only designated tax authorities would be allowed to assess and collect taxes on behalf of the state government and local councils. Individuals, unions, associations, and other informal groups would be prohibited from collecting levies or erecting roadblocks for such purposes.
Under the proposed framework, the Lagos State Internal Revenue Service would serve as the central collection agency, with increased reliance on digital platforms for payment and monitoring.
The bill mandates that all tax payments be made electronically through approved channels such as bank transfers, debit or credit cards, mobile wallets, POS systems, and USSD services. Cash payments would be strictly prohibited unless routed through designated bank accounts.
It also proposes strict penalties for violations, including fines of up to two million naira or imprisonment for illegal tax collection, and up to five million naira or jail terms for groups that mount roadblocks to collect dues or levies.
The legislation further seeks to harmonise various charges such as market levies, transport tickets, abattoir fees, and other local government revenues under a unified structure determined by a state revenue committee.
Speaking during the hearing, Speaker of the House Rt Hon Mudashiru Ajayi Obasa, represented by Deputy Speaker Mojisola Meranda, said the bill reflects the Assembly’s commitment to inclusive and people focused lawmaking.
He explained that effective taxation is essential for development, noting that roads, schools, healthcare, transportation, and security depend on a well structured revenue system.
According to him, the main objective of the bill is to eliminate multiple taxation, reduce confusion, and improve transparency for residents, businesses, and investors in Lagos State.
Chairman of the House Committee on Finance, Femi Saheed, described the bill as a major step toward improving revenue administration and strengthening the state’s financial capacity.
He noted that concerns over multiple taxation and unauthorised revenue collectors have long affected economic activity in the state.
Stakeholders at the hearing, including the Chairman of the Lagos State Internal Revenue Service Dr Ayodele Subair and Special Adviser on Taxation Abdulkabir Ogungbo, expressed support for the initiative and pledged cooperation with the Assembly.
If enacted, the bill is expected to significantly reshape revenue collection in Lagos State and strengthen government control over taxation processes while promoting transparency and accountability.
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