The Special Adviser to the Lagos State Governor on Taxation and Revenue, Mr. Abdul-Kabir Ogungbo, has emphasized the state’s intention to broaden its tax base by welcoming new taxpayers into the system, with a focus on not burdening the existing taxpayers.
This strategic move is aimed at boosting Internally Generated Revenue, which in turn will facilitate the development of infrastructure in Lagos State, one of the fastest-growing economies in Africa.
Ogungbo outlined the key areas of concentration, which include property, the informal sector, and the digital space.
He stressed the need for additional funds to support security, infrastructure, and social amenities.
The property aspect encompasses assets like real estate and vehicles, with taxpayers encouraged to contribute in accordance with their financial capacity.
The informal sector holds significant potential for funding the state’s budget, and Ogungbo expressed the intention to engage various stakeholders within this sector to bring previously unregistered individuals into the tax net.
Furthermore, he recognized the unexplored potential of the digital economy space, where substantial commercial activities are taking place.
The strategy is to expand horizontally by including more individuals in the tax net, rather than putting excessive pressure on the existing taxpayers.
To further enhance revenue collection and transparency, Ogungbo disclosed the decision to elevate the taxation and revenue office to ministerial department status, with a dedicated Special Adviser.
This step aims to facilitate partnerships with the people of Lagos, establish efficient frameworks for tax payment, and provide clear information regarding government projects and initiatives funded by taxpayers.
