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The Lagos State House of Assembly has begun moves to address the issue of multiple taxation and illegal levy collection across the state through a new harmonised tax bill.
Eko Hot Blog reports that at a public hearing held on Friday by the House Committee on Finance, lawmakers and stakeholders discussed a proposed law aimed at streamlining tax collection and stopping unions, associations and unauthorised groups from collecting levies from residents and businesses.
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The bill, titled “Lagos State Harmonised Taxes and Levies (Approved List for Collection) Law,” seeks to ensure that only approved tax authorities collect taxes and levies on behalf of the state and local governments.
If passed into law, individuals, unions or groups will no longer be allowed to mount roadblocks or checkpoints to collect taxes, levies or dues in any part of Lagos State.
The proposed legislation also provides strict penalties for violators. Anyone found collecting levies illegally or using roadblocks for revenue collection could face a N5 million fine, a three-year jail term, or both.
Under the bill, the Lagos State Internal Revenue Service, LIRS, would oversee the collection of approved levies, while technology would be deployed to improve transparency and efficiency in tax administration.
The law also seeks to harmonise several daily charges, including market levies, transport tickets, abattoir fees and other related payments often collected by different groups.
Speaking during the hearing, Speaker of the House, Mudashiru Obasa, represented by Deputy Speaker Mojisola Meranda, said the bill was necessary to create a more organised and transparent tax system in the state.
According to him, residents and businesses have long complained about multiple taxation and harassment by illegal collectors, adding that the Assembly was determined to address the challenge.
“We do not legislate in isolation. Governance becomes more effective when people are allowed to contribute to policies that affect them,” he said.
Chairman of the House Committee on Finance, Femi Saheed, also described the bill as important for improving revenue generation while protecting businesses and residents from exploitation.
He noted that taxation remains critical to funding infrastructure, healthcare, transportation and other public services, but stressed that the process must be properly regulated.
Stakeholders at the hearing, including officials of the Lagos State Internal Revenue Service, commended the Assembly for initiating the bill and pledged support for reforms that would improve revenue administration and reduce illegal collections across the state.
