A bill that is expected to effectively eliminate multiple taxation in Lagos State was signed into law on Monday by Governor Babatunde Fashola.

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. Ade Ipaye, the special adviser to the governor on taxation and revenue, said the administration of the law will “enthrone an orderly tax system” in the state. “This (law) is of public interest because it solves a long-standing problem in Lagos State,” he said. While introducing the bill, Abdul-Lateef Abdul-Akeem, the special adviser to the governor on legislative and political bureau, said the need for the bill became obvious at a stakeholders meeting on taxation held in December 2007 where several participants expressed their misgivings towards the mode of collection and attitudes of collecting agents. “This bill will sanitise the system and lay to rest the issue of multiple taxation and use of touts,” he said.

Mr. Fashola, while addressing an audience including local council chairmen and members of the state executive council present at the public assent, said he proposed the bill after listening to the complaints of people. “We needed to demonstrate that we are serious in addressing the complaints of our people,” he said, “Especially because of the misgivings arising from activities of touts. Citizens who we are supposed to protect have become object of harassment by people who do not have our mandate.”

Highlight of the law

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. Mr. Ipaye also explained that annual levies will be combined on a single assessment notice in order to harmonise all the levies into a singular payment.

The law, while prohibiting road block, also establishes a State Joint Revenue Committee, comprising local council chairmen and state officials, which will annually fix the rates of the approved levies. However, Mr. Ipaye said the rates may vary depending on the cosmopolitan nature of each local council. Henceforth, 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.

The law did not fail to prescribe penalties ranging from N500,000 fine to three years imprisonment for various offences like touting, collection of levies without remittance, and collection of rates higher than prescribed. However, Mr. Ipaye explained that tenement rate is already included in the land use charge and will not be collected separately by the local councils.



Eko o ni baje lai lai.

Amen! Lets just pray this filters all the way down to the streets.

The UTC cutlass wielding omo onile boys in my area should be made aware of this law O !!

bros, but u forgot to include the new animal/pet tax