The world over, even in the westerm world with advanced technologies, pervasive tax evasion remains a major headache for which governments are continuously in search of curtailment measures.
Money is never enough. So, outside developing the ingenuity of collecting all that belongs to Ceaser’s, how else can those entrusted with power meet up with the high expectations of a citizenry who are largely contending with worsening economic conditions and dwindling standards of living?
Here, the achievement of LASG in sustaining its position as by far the most successful state with the highest IGR in Nigeria comes to the forefront of my discourse. It is not enough to simply attribute this success to the state’s position as the nation’s commercial nerve centre nor to its overflowing people and corporate population. Any entity can be big for nothing. As I have heard my Bishop – David Oyedepo say repeatedly, ” if anything is working well, its because someone is behind working it”!
Here, we must give kudos to the suave, ‘say-little-do-much-more’ Governor Babajide Sanwo-Olu of Lagos State. Surely there’s a wisdom to be learned from every policy and systems that keep reining in more revenues through the payers’ substantial compliance.
The Lagos state internal revenue service ( LIRS) and its efficient leadership have for long remained the engine room for the implementation of the state’s drive , perhaps in collaboration with good consultants who have the requisite acumen and track record in efficient tax and revenue generation. Surely, this cannot be too hard for other states to benchmark: setting the targets and putting the right people in place to achieve same.
Also, going through the long list of partner banks and finance platforms made available to tax payers, I observed that virtually all big, medium and small players in that industry are engaged as collection agents. Sadly, there are states where payments of taxes and revenues are still restricted to a few select banks, ostensibly for ease of tracking and auditing.
Yet, to maximise collections, payments must be less cumbersome and continuously reviwed for the convenience of the payer.
This is what Lagos makes available by its continuously expanded platforms for tax collections with the right technology put in place for seemless tracking and receipting. For instance, the IBILE HUB, introduced by LIRS a few years back, specifically targets informal sector businesses ( traders, mechanics, welders, etc) to voluntarily pay taxes via a user-friendly platform for tax filing and payment.
This is a very huge sector in every state where exracting a token from the targets can go a long way in providing and maintaining infrastructures that make life a lot better for the generality of the people.
Quite significantly, the office of the S.A. to the govenor on tax and revenue is a strategic position that collaborates with the LIRS and other key stakeholders in all the sectors to drive efficiency and improve compliance rate. The fact that the present occupier of that office, Hon. Abdul-Kabir Opeyemi Ogungbo is a technology expert, underscores not just the seriousness of the governor’s intent in creating such distinctly defined role but also the pivotal place of technology in achieving govt revenue goals.
This is exactly what LASG has demonstrated in many respects. Today, owing to a dynamic system over the years which reviews effectiveness of its tax administration, the IGR of Lagos is heavily automated. Thus, Governor Sanwo-Olu has not only sustained but kept the state revenue growth on upward trajectory.
Prince Debo Luwaji is a Public Affairs Analyst and entrepreneur.
