A bill seeking to harmonise taxes and eliminate the collection of levies by unions and other unauthorised groups in Lagos State is currently being considered by the Lagos State House of Assembly.
The bill, titled “A Law to Enact the Lagos State Harmonised Taxes and Levies (Approved List for Collection) Law, to Provide for the Collection of Taxes and Levies by the State and its Local Government Councils and for Related Matters,” underwent a public hearing today before the House Committee on Finance.
According to the proposed legislation, no individual other than the relevant tax authority shall assess or collect revenue on behalf of the state or any local government council in Lagos State, reports Daily Independent.
The bill also stipulates that no person, association, union, group, or body of persons —including any tax authority —shall mount roadblocks in any part of the state for the purpose of collecting taxes, levies, or membership dues.
“The relevant tax authority shall do all such things as may be necessary and expedient for the assessment and collection of taxes and levies, including the deployment of technology for assessment, collection, and other activities related to tax administration.
“The payment of any tax, levy, or fee shall be made via bank transfer or through the use of credit or debit cards, digital wallets, Point of Sale (POS), USSD, or any other electronic platform authorised by the relevant tax authority.
“Where electronic payment channels are unavailable, payment shall be made directly into designated bank accounts approved by the relevant tax authority.
“Under no circumstance shall any payment for taxes, levies, or fees be made or received in cash,” the bill stated.
The proposed law further provides that no local government council or state institution may authorise the Lagos State Internal Revenue Service (LIRS) to collect taxes or levies on its behalf without clearly defined terms and conditions.
It also grants individuals the right to seek legal redress against any collector or government authority that imposes unlawful taxes or levies.
“Any unauthorised person who collects or imposes any tax, levy, or fee commits an offence and shall, upon conviction, be liable to a fine of N2 million or imprisonment for three years, or both.
“Any individual or group that mounts a roadblock for the purpose of collecting taxes, levies, fees, or membership dues commits an offence and shall be liable upon conviction to a fine of N5 million or imprisonment for three years, or both,” the bill added.
The bill also seeks to harmonise daily ticketing charges such as market levies, animal trade taxes, slaughter or abattoir fees, transporters’ tickets, and other related charges. Rates, where applicable, are to be determined by the State Joint Revenue Committee.
Under the proposal, the Lagos State Internal Revenue Service would serve as the collecting authority, with revenue shared between the state government and local government councils.
Speaking during the public hearing, the Speaker of the Lagos State House of Assembly, Rt. Hon. (Dr.) Mudashiru Ajayi Obasa, represented by the Deputy Speaker, Hon. Mojisola Meranda, said the gathering reflected the democratic and participatory legislative tradition of the Assembly.
According to him, lawmaking must not only be constitutional and progressive but also inclusive and people-oriented.
“This is why public hearings remain an integral and indispensable part of our legislative process.
“We do not legislate in isolation. Governance becomes more effective when citizens are given the opportunity to contribute directly to policies and laws that affect their daily lives,” he said.
Obasa explained that the proposed legislation was both timely and necessary, stressing that taxation remains central to governance and development.
“Roads, schools, healthcare facilities, security architecture, transportation systems, environmental initiatives, and other developmental projects depend significantly on an efficient and accountable revenue system.
“One of the major objectives of this bill is to harmonise taxes and levies in order to eliminate duplication, confusion, and multiple taxation, which have over the years become major concerns for residents, businesses, and investors in Lagos State,” he added.
Earlier in his welcome address, Chairman of the House Committee on Finance, Hon. Femi Saheed, described the bill as one that would significantly impact governance, revenue administration, and business operations in the state.
“Taxes are major sources of government revenue. However, concerns have persisted over multiple taxation and the activities of unauthorised revenue collectors.
“It is against this background that the new tax policy has been introduced in line with the recently passed tax reform bill by the National Assembly.
“This bill is not just about revenue generation; it is about creating sustainable revenue opportunities,” he said.
Also speaking, the Majority Leader of the House, Hon. Noheem Adams, described the bill as critical to increasing the state’s revenue base and improving the government’s capacity to provide infrastructure and essential services.
Other stakeholders at the hearing, including the Chairman of the Lagos State Internal Revenue Service, Dr Ayodele Subair, and the Special Adviser on Taxation, Mr Abdulkabir Ogungbo, commended the lawmakers for initiating the process and pledged the state government’s commitment to policies that would serve the interests of residents and businesses.
