Nigeria, March 8, 2016 – The Lagos State Government has said it is setting up special Revenue Court as part of effort to shore up revenue of the state.
Attorney General and Commissioner for Justice, Mr. Adeniji Kazeem who made the revelation in Lagos said the Chief Judge of Lagos State, Justice Olajumoke Atilade has agreed to set up the court to facilitate tax collection.He added that his office recently set up Rapid Tax Prosecution Unit to aid the Lagos Internal Revenue Service (LIRS) in its drive to collect taxes.
“Prosecution and jail term for defaulting tax payers will be a tool that we will be actively using to ensure full compliance. Tax officers, I understand, will be very aggressive in their collection of taxes and the public is hereby advised to cooperate with them because obstruction of these tax officers in their lawful duty can and will lead to prosecution.
“Tax dodgers watch out because the long arm of the law will eventually reach you. All tax payers are also reminded that giving false information is also an offence and can be used in the prosecution of your tax default. If you pay your taxes regularly, you will have no problem,” Kazeem said.
On his part, Commissioner for Finance, Dr. Mustapha Akinkunmi, said the state generated at least N24.5billion from IGR in the month of January 2016, in line with the efforts of the Governor Akinwunmi Ambode-led administration to reform its tax system and develop a tax paying culture.
Akinkunmi said in the light of the reduction of federal transfers to states including Lagos, the state government was looking inwards to secure sustainable ways of increasing its revenue profile and plugging leakages in the system.
According to Akinkunmi, the LIRS contributed 79 per cent to the State’s IGR in 2015, which equates to 56 per cent of the State’s total revenue including Federal transfers, adding that the revenue is expected to continue on an upward swing, driven by strong tax collection.
“This trend of strong performance is continuing. In January this year, LIRS has contributed N24.5billion in revenue, attaining 98 per cent budget performance for the month and recording 12 per cent growth from the same period in 2014.”
The Finance Commissioner attributed the improvement in the revenue generation of the state to voluntary tax compliance by tax paying members of the public despite the harsh economic terrain.
On his part, the LIRS Chairman, Mr. Olufolarin Ogunsanwo, said the agency had consistently been at the vanguard of ensuring reforms in the state to improve the ease of doing business in Lagos, adding that such reforms would aid voluntary tax compliance.
