Tax Law: Lagos Assembly moves for domestication as bill scales second reading

Lagos State House of Assembly at its plenary session on Tuesday has committed the Lagos State Harmonized Taxes and Levies Bill to the Committee on Finance for further legislative scrutiny through a public hearing to report its findings in two weeks.

This emanated following the second reading of the Bill by the Chairman, Committee on Finance, Hon. Obafemi Saheed, stating the urgent need for State and Local Government to coordinate a clear tax regulations and practices.

Leading the debate, Hon. Tobun Abiodun described the bill as a critical reform that would eliminate the challenge of multiple taxation in Lagos State. He further explained that the bill would foster collaboration between the State and Local Governments through structured engagement to determine tax jurisdictions, while also addressing illegal roadblocks and encouraging the deployment of modern technology for tax collection.

Commending the importance of the bill, Hon. Gbolahan Yishawu noted that the bill would abolish cash-based tax collection, thereby enhancing transparency and accountability, while also prescribing penalties for defaulters to strengthen compliance.

Hon. Surajudeen Tijani in his submission, noted that the bill would regulate revenue collection processes and curb the activities of unauthorized individuals involved in tax collection.

While Hon. Solomon Bonu emphasized the need for proper public sensitization, urging relevant government agencies to ensure that residents are adequately informed about the provisions and benefits of the bill.

Giving his remarks, the Speaker, Rt. Hon. Mudashiru Obasa, who presided over the Plenary reiterated that the bill is in the interest of Lagosians as it promotes a fair and equitable tax system anchored on the principle of progressive taxation. He urged lawmakers to return to their constituencies to sensitize their constituents.

“There is a need for continuous sensitization of the people to ensure they are well informed about the nitty-gritty of this bill,” the Speaker stated.

He thereafter directed the Committee on Finance to report its findings in two weeks.