Lagos to deepen tax net to boost IGR

The Lagos State Ministry of Finance said it would sustain the momentum to improve the finances of the state for the next two years as it targets a year-on-year minimum increase of 25 to 30 per cent of its internally generated revenue (IGR) base.

Part of the efforts to improve the state’s finances is to deepen tax net by mapping the informal sector clusters and bringing in a minimum of one million additional taxpayers on an annual basis.

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The Commissioner for Finance, Dr Rabiu Olowo, who said this yesterday, also identified efforts to embed and grow the state Internal Revenue Service (LIRS) e-tax portal to enhance integration of taxpayers’ database and revenue collection within 90 days, as well as to arrange and optimally structure 100 per cent funding of budget deficit.

According to him, the state financing strategy, by design, is anchored on a sustainable internally generated revenue model. This, he said was steadfastly pursued and sustained as the state recorded improved revenue growth despite COVID-19 challenges.

While he maintained that the state would continue to focus more on IGR by consolidating on the taxation sources, he implored unwilling members of the public to turn a new leaf and willingly perform their civic responsibilities by paying their taxes promptly. He also encouraged those who had been paying voluntarily not to relent.