[b]Press Releases

Taxation: "It's The Only Way To Take Our Destiny In Our Hands", Says Fashola
• Urges Lagosians to resist fake tax official[/b]s

Dec 8, 2010 - Lagos State Governor, Mr. Babatunde Fashola (SAN), Wednesday urged Lagos residents to shun those who promise to abolish tax payment in the State saying it is the only means to ensure the sustainable development of the State and the welfare of the people.

Governor Fashola, who spoke at the Civic Centre, Victoria Island venue of the 4th Lagos State Taxation Stakeholders' Conference, also asked Lagosians to resist fake tax officials who impose unauthorized levies and impersonate Government tax officials.

He told the Stakeholders, made up captains of industries, professional associations, religious and traditional rulers as well as Government functionaries, "Some people have been going around saying you are being overtaxed and promising all kinds of things. But I tell you, by paying your tax; you take your destiny in your hands. I will rather take my destiny in my hands than go to Abuja every month to beg".

Governor Fashola, who said the issue of multiple taxation has been eliminated by the law which approved the list of levies to be collected by the Local Governments, however, expressed regrets that some people still impose unauthorized levies on the people and impersonate Government tax officials.

"I urge you to resist such people; they are not our representatives. Resist the urge to settle so that you do not encourage them", the Governor said explaining that any confusion or misunderstanding about what tax or levy to pay should be clarified at the State's Internal Revenue Service or any of the Lagos Tax Offices located across the State.

Governor Fashola said depending on the monthly allocation from the Federation Account would impoverish and condemn the State to perpetual underdevelopment pointing out that all over the world, taxation has been recognized as the only resource for sustainable development.

According to the Governor, the N6 billion that accrues to Lagos State as monthly allocation from the Federation Account is not even enough to take care of staff salaries adding that with the population of the State increasing at a very rapid rate, even the N14 billion to which the Internally Generated Revenue has risen would hardly be enough to take care of the work to be done.

Expressing profound gratitude to all the people who pay their taxes regularly, Governor Fashola declared, "Without your support, all the things that are attributed to us would not have been possible. It has singled out our State as the only State in the Federation that will survive even if the oil stops flowing today".

"We are not done yet. We still have a lot to do so we must continue to pay our taxes so that we will ginger those who are working to continue to work", the Governor said adding that the evidence of the way the revenue from tax is being used is there for all to see.

He continued, "It you look at the mix of the audience here today, you will realize the very essence of tax as an instrument that equalizes society. What taxation does is to entitle the payer to ask questions about how the tax is used. As we get increasingly involved, we will realize that even the crude that is in our land affords us the right to ask questions on how the revenue from it is used. The Social Contract is alive in Lagos. There is no representation without taxation".

Describing taxation as the golden key to economic advancement, Governor Fashola further declared, "In Lagos, in Nigeria and all over the world, it is becoming increasingly clear that a government cannot do more than it is financially empowered to do. An impoverished government with a disinterested citizenry necessarily has its potentials severely limited".

He said the State has continued to maintain the level attained in its internally generated revenues despite economic depression, stock market crash and bank crises which have all caused significant job losses in the formal sector and adversely affected the inflow of personal income tax on salaries, dividends, interests and rents among others.

"In the past year, we have gone further to make taxation an easier burden to bear in Lagos State. Our determination to eliminate illegal taxes, touting and extortion informed the passage of the Local Government Levies (Approved List for Collection) Law by the State House of Assembly and my assent to the Law on April 10, 2010", the Governor said pointing out that the Law was conceived in response to stakeholders' complaints regarding some anomalies in the way levies were charged and collected at the local level".

The Governor said every stakeholder in Lagos has a critical role to play in ensuring the success of the Local Government Levies (Approved List for Collection) Law adding, "Whether as individuals or in collective groups. Like landlords, residents' associations, market associations or artisans' group or community development associations, we are all part of our respective local governments and must be bold to approach our chairmen and other officers for resolution of any areas of doubt or confusion".

"This involvement is the only way of realizing the true participatory spirit and lasting dividends of democracy. It will also reflect on how keenly you take the issue of voter registration; how closely you participate in the choice of the next set of representatives in Government and how seriously we all commit ourselves to the successful outcome of the next general elections", Governor Fashola said.

The Governor said Government is reviewing its practices and procedures in all its revenue agencies and finding ways to make compliance easier and cheaper for the people adding, "All our administrative structures are for service to the people and we, therefore, look forward to your criticisms and suggestions where you think we can do better".

Earlier, during an interactive session coordinated by the Special Adviser to the Governor on Taxation and Revenue, some stakeholders commended the State Government for its progress in making tax administration less burdensome to the people while some also gave suggestions on how things could be better done.

President of the Chartered Institute of Taxation, Mr. Kunle Quadri, in his remarks, expressed appreciation to the Lagos State Tax Revenue Board and the Lagos State Government for the transparency in which tax is being administered in the State adding, however, that the informal sector was yet to be fully integrated into the tax system of the State.

Congratulating the State Government for its infrastructural development efforts, the President said Government should find a way of encouraging the informal sector to come into the tax system of the State adding that it will greatly boost the State's internal revenue

Dr. Oladosu, Chairman, Lagos State Medical Practitioners' Association, while also commending the Government for its people friendly tax administration policy, however, pleaded with Government to consider his members as people rendering social services to the people saying their profession is not a business.

In her remarks, President of the Nigerian Employers' Consultative Association, Mrs. Uche Ajegun thanked the Government for improvement it has recorded in the areas of tax administration pointing out that the main issues in tax administration are overtax, under-tax and approach.

The Manufacturers Association of Nigeria, represented by Mr. Oluwasegun Osadipe, thanked the Government for the tremendous improvement made in tax administration in the State adding that unlike the other conferences when MAN came with complaints, the association has no complaints this year and hopes that things continue to get better.

Other representatives of organizations who spoke at the session were the Director General of Lagos Chamber of Commerce and Industry, Mr. Mudi Yussuf who thanked Government for giving the Chamber a platform to interact continually with Government, The Institute of Surveyors represented by Mr. Felix Innua, who asked Government to caution its tax officials on their approach and Grand Matron of the Apapa Local Government Market Association, Chief (Mrs.) Adepoju, who also commended Government for making tax payment easier and transparent in the State.

Earlier, in his welcome address, the Chief Executive Officer of the State's Internal Revenue Service, Mr. Tunde Fowler, urged the people to always pay their tax as their own quota to the development of the State pointing out that African countries including Nigeria remain poor in spite of their abundant natural resources because such resources alone are not enough to lift them out of poverty without tax adding, "As we contribute our own quota to the well-being and development of Lagos, we shall be in peace and prosperity".

Highlight of the Conference was the presentation of awards to Governor Fashola and his immediate predecessor, Asiwaju Bola Ahmed Tinubu, the Speaker of the House of Assembly Right Honourable Adeyemi Ikuforiji, Hon Solomon Olamilekan, Chairman House Committee on Finance, former Attorney-General and Commissioner for Justice, Professor Yemi Osinbajo, former Commissioner for Finace , Mr Wale Edun and Special Adviser to the Governor on Taxation, Mr. Ade Ipaiye, for engineering the legal framework to reform tax administration in the State.

Also some captains of industries were presented with awards for being tax compliant. They included Mr. Gamaliel Onosode, Messrs Coca Cola, Messrs Julius Berger Plc and Mr. and Mrs. Oluyemi Ayeni of Tantalizers. A Dance Drama tracing the current efficient and functional tax administration system in the State to the pro-active steps of the administration of Asiwaju Bola Ahmed Tinubu under which the Governor Fashola also served was staged by the Crown Troupe at the occasion with the video also unveiled.

Also present at the occasion were members of the State Executive Council and the Legislature, His Royal Majesty, the Oba of Lagos , Oba Babatunde Rilwan Akiolu 1, Oba Akran of Badagry, the Ayangburen of Ikorodu, Lagos White Cap Chiefs and other top traditional rulers across the State, representatives of market associations, artisans as well as top government functionaries.