The Finance Committee of the Lagos State House of Assembly on Friday conducted a public hearing on a proposed bill aimed at harmonising taxes and stopping the collection of levies by unions and other unauthorised bodies across Lagos State.
The proposed legislation, titled “A Bill for 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,” seeks to streamline revenue collection within the state.
Under the bill, only recognised tax authorities would be permitted to assess or collect taxes and levies on behalf of the state government or local councils.
The legislation also prohibits individuals, unions, associations or groups from setting up roadblocks for the collection of taxes, levies or membership dues anywhere in the state.
“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 bill stated.
The proposal further provides that no state agency or local government council can authorise the Lagos State Internal Revenue Service to collect taxes or levies on its behalf without clearly defined terms and conditions.
It also grants residents the right to challenge unlawful taxes or levies in court against any collector or government authority involved.
According to the bill, any person or group found erecting roadblocks for the purpose of collecting taxes, levies, fees or union dues would face a penalty of N5 million, a three-year jail term, or both upon conviction.
The legislation also seeks to harmonise daily ticketing and levy collections such as market fees, abattoir charges, transport tickets, animal trade levies and similar payments, with rates to be determined by the State Joint Revenue Committee where necessary.
If passed into law, the Lagos State Internal Revenue Service would serve as the central collecting agency, while revenue generated would be shared between the state government and local councils.
Speaking during the hearing, Speaker of the Assembly, Mudashiru Obasa, represented by Deputy Speaker Mojisola Meranda, described the exercise as part of the Assembly’s commitment to participatory governance.
According to him, effective lawmaking must be inclusive and reflect the interests of the people.
“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 stated that the proposed law was necessary to address issues surrounding multiple taxation and revenue administration in the state.
“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, Chairman of the House Committee on Finance, Femi Saheed, described the bill as crucial to governance, business operations and revenue generation.
He noted that the legislation aligns with recent tax reforms passed by the National Assembly and is designed to create sustainable revenue opportunities for the state.
Also speaking, the Majority Leader of the House, Noheem Adams, said the bill would strengthen the state’s revenue base and improve service delivery.
Stakeholders present at the hearing, including Ayodele Subair, commended the Assembly for initiating the process and pledged support for policies aimed at improving the business environment and public administration in the state.