Lagos Tax Agency To Go After Informal Sector Tax Payers

Olufolarin Ogunsanwo, Head of the Lagos State Internal Revenue Service, yesterday said the agency has begun the process of overhauling its informal sector operations to ease voluntary compliance by tax payers and 3 categories of tax payers in the sector have been identified.

Mr. Ogunsanwo disclosed this at the LIRS press conference held in Lagos.

“His Excellency has also recently approved the upgrading of this function of our operations to a full Directorate in appreciation of the enormity of work to be done and importance attached to it,” he said.

“To this end, we have identified three categories of tax payers in the informal sector. These are: market men/women and artisans; micro, small and medium scale enterprises (including professionals); and household domestic staff.”

The LIRS boss said the agency had mandated its partners to commence the production of electronic Tax Clearance Certificate (eTCC) within 72 hours.

“Taxpayers are enjoined to contact our Help Desk/Hotline if this service delivery standard is not met.

“Physical filling of Annual Returns is being complemented with e-submission to ease compliance by taxpayers. This year, we got 95 percent – unprecedented – compliance from all employers of labour in Lagos State.

During a question-and-answer-session with journalists, Mr. Ogunsanwo said the low income earners being targeted for taxation are those earning N300, 000 annually or less – which includes household security men, cooks, nannies, and others.

“We are targeting domestic helps who are self-employed, whose income come to them directly, they are actually taxable. If you are earning N300, 000 or less per year, the law says that it is taxable by a minimum of one percent.

“If your income is N300, 000 per annum, you will pay one percent, that is, N3, 000 per year or N250 per month.”

On whether the state government had a contract with Alpha Beta Consulting, for the company to collect revenue on behalf of the state, Mr. Ogunsanwo said various consultants were collaborating with the government.

“We continue to engage with consultants,” he said. “All they do for us is to collect data. There is nothing like anybody collecting revenue on behalf of the government.”