Lagos Assembly sets to come with law against multiple taxes,, proposes ₦5m fine for defaulters

 

By allcitynews.ng 

Lagos Assembly moves to end multiple taxation, proposes N5m fine for illegal levy collection

The Lagos State House of Assembly has commenced deliberations on a clarification on tax reform bill, meant to harmonise taxes and levies across the state.

This latest development is designed to curb multiple taxation, eliminate illegal collections, and improve the ease of doing business.

The proposed legislation, titled the Lagos State Harmonised Taxes and Levies (Approved List for Collection) Bill 2025, was the subject of a high-level public hearing attended by lawmakers, business groups, transport operators and other stakeholders.

The bill seeks to consolidate more than 60 existing taxes and levies into nine major tax categories, aligning the state’s fiscal framework with the federal government’s ongoing economic reforms and the Renewed Hope Agenda.

Under the proposed law, individuals or groups found collecting unauthorised levies, mounting illegal roadblocks, or engaging in cash-based extortion risk fines of up to ₦5 million, imprisonment for three years, or both.

Speaking during the hearing on behalf of Speaker Mudashiru Obasa, Deputy Speaker Mojisola Lasbat Meranda said the bill introduces a fully electronic payment system aimed at enhancing transparency and reducing opportunities for abuse.

“By eliminating cash transactions, the state is reinforcing transparency and protecting businesses from exploitation and harassment by unauthorised groups,” she stated.

The chairman of the House Committee on Finance, Femi Saheed, said the proposed legislation was intended to dismantle long-standing challenges associated with arbitrary ticketing, illegal collections, and overlapping taxes that have negatively affected businesses and residents across Lagos.

According to him, the reform is not solely about boosting revenue generation but also about creating a predictable and investment-friendly business environment.

“It is not merely about revenue generation but about creating order and ensuring businesses operate within a predictable environment,” Saheed said.

He added that the legislative process would remain open and inclusive, noting that stakeholders were encouraged to identify hidden or unofficial taxes not currently captured in the draft legislation.

“It is our responsibility to ensure that the final legislation is fair, practical and implementable. Every submission and memorandum made today will be carefully considered in the best interest of Lagos State,” he added.

During the public hearing, representatives of the Maritime Truck Drivers Association and the Lagos State Council of Commercial Transport Operators raised concerns over persistent harassment by touts and unauthorised agents operating on local council roads.

Responding to the complaints, Meranda assured stakeholders that Clause 9 of the proposed bill specifically addresses illegal collections and enforcement abuses.

“We will cross the T’s and dot the I’s to ensure a robust law,” she said.

Economic analysts say the proposed reforms could significantly improve investor confidence in Nigeria’s commercial capital by reducing informal levies, improving transparency, and streamlining tax administration for businesses operating in the state.

If passed into law, the legislation is expected to mark one of the most comprehensive tax harmonisation efforts undertaken by any subnational government in Nigeria.

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