Housemaids and artisans are now to be included in the Lagos State Government’s tax net as part of Gov. Akinwunmi Ambode administration’s inclusion of every resident to the growth of the state.
This was revealed by the Chairman of the Lagos State Internal Revenue Service (LIRS), Mr Olufolarin Ogunsanwo, at a news conference in Alausa on Tuesday.
This new tax regime was necessitated because of the declining national revenue as a result of the fall in the global oil prices and the need for government to provide and maintain basic infrastructure.
Ogunsanwo said the agency had commenced the process of overhauling the informal sector with a view to ensuring voluntary compliance by all tax payers. He said the agency had identified three categories of tax payers in the sector.
These three categories include market men/women, artisans, micro, small and medium-scale enterprises and domestic staff.
The LIRS boss said these categories of people were expected to remit one per cent of what they earned to government’s coffers.
Ogunsanwo said that a directorate had been created in the agency to oversee the sector, while modalities for taxing these categories of people had been worked out.
Also, in addition to the traditional bank portal, new payment platforms, including POS, online and other electronics multi-modal system had been introduced to make it easier for residents to remit their taxes, Ogunsanwo revealed.
He said a review of the tax Form A of the Personal Income Tax Act had also been conducted. The chairman said the guide notes would be translated into pidgin and Yoruba for all to understand.
Customer care help lines would also soon be created in all the 38 tax stations within the state to enlighten residents.
The LIRS boss mentioned that disciplinary measures, including outright dismissal had been introduced to check corrupt practices among LIRS staff.
The Lagos State Internal Revenue Service (LIRS) is reported to have contributed 79 per cent to the state’s Internally Generated Revenue in 2015, despite the harsh economic conditions.