Lagos mulls increase of non-taxable income from 18 to 40 percent

 By Cornelius Kayode

Lagos State Government on Monday has concluded arrangements to increase collection of taxes from non-taxable internally generated revenue from 18 per cent to 40 percent. 

Special Adviser to the Lagos State Governor, Office of Internal Audit, Dr. Oyeyemi Ayoola said this at the opening of a five day training on Revenue Systems Audit of non-tax internally generated revenue, which according to her would enable officers learn cutting edge technologies in auditing and guarding against leakages in Non-Tax Internally Generated Revenue.

The training was organized by the Office of Internal Audit in  collaboration with University of Calgary(Haskayne School of Business) Alberta, Canada.

Ayoola said as a state, we have THEMEs plus Agenda to achieve, and according to her, "for us to achieve this, we need revenue to execute the projects, hence the need to have upward review of the non-taxable internally generated revenue in the state",  Ayoola said.

She added that the training was organized to  raise champions on revenue system that would be able to audit on a daily basis on the collection from the point of  enumeration, Billings and payments.

"This Training of Internal Auditors is part of Lagos State continuous efforts at broadening the non-tax revenue base, enhance compliance, in order to generate enough revenue to meet the objectives of its THEMES PLUS Agenda.

The Special Adviser, who  said the twenty four(24) Auditors selected among 425 Internal Auditors are “Revenue Systems Audit Champions, added that they have been carefully selected to lead this process of Revenue Systems Audit cycle and would help in achieving the Lagos developmental goals and would be able to give assurance on non taxable revenue collection, aimed at improving as well as increasing it from the present eighteen to forty percent collection through  oversights.

According to the Special Adviser, "This is the first phase training for “Revenue Systems Audit Champions and is targeted at equipping our Auditors to support in taking proactive steps, detective and corrective actions to grow Non-Tax revenues", she said

She explained further that Lagos State's Internally Generated Revenue is classified into Tax and Non-Tax Revenue, adding that Lagos Internal Revenue Service collects tax revenue like Personal Income Tax, Capital Gains tax, etc., and other ministries, departments and agencies are responsible for other non-tax revenue under their ministerial mandates. 

She also analysed that taxable  revenue include Land Use Charge, Fees, licences, Fines, which according to her are paid into Lagos State Consolidated Revenue accounts through various banks in Nigeria.

Also maintained that the revenue system in Lagos State is dynamic, it continues to leverage on technology for efficient collection. 

In his goodwill message, the Special Adviser on Taxation and Revenue, Abdulkabir Ogungbo,

also said the training was aimed at  expanding the Non-Tax Internally Generated Revenue base as well drive compliance of internal systems that would assist the state in achieving its target expenditure.

Permanent Secretary,Office of Internal Audit, Kikelomo Dawodu, in her welcome address, said development is a catalyst in every endeavours of life hence the need to ensure there was sufficient fund to keep Lagos running and put leakages to rest in order to deliver better services to Lagosians.