Lagos expands tax net to boost IGR

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LAGOS Internal Revenue Service, LIRS, has expanded the state’s tax nets with the aim of increasing the Internally Generated Revenue, IGR.

The Executive Chairman, LIRS, Mr. Folarin Ogunsanwo who stated this at a meeting with management and staff of the agency, advocated for willful compliance by residents with tax remittances against the norms of tax auditing.

According to Ogunsanwo, the agency has concluded plans to expand the tax net by bringing other taxable residents into play, adding; “This will ultimately lead to proportional increase in the IGR for the state.”

The LIRS boss said the measure became necessary as it would increase the revenue base of the state which will in turn give the present administration leeway to fund projects and fulfil his electioneering promises to residents.

According to Ogunsanwo, in order to utilize funds generated internally to cushion the effects of the shortfall in crude oil prices in the international market, the agency was ready to deliver by increasing the IGR base of the state.

The tax boss, while advocating wilful compliance noted that the tax audit system currently in use, was unnecessary, avoidable and a waste of human resources.

He stressed the need to leverage on the advantages provided by embracing Information and Communication Technology, ICT, saying; “This will ease the process of collecting revenue, reducing its cost and eliminate some perceived bottlenecks.”

Ogunsanwo further stated that embracing willful compliance would allow the channelling of the much needed human resources into areas of growth and development rather than being compelled or forced to remit taxes.

While expressing the determination of the agency in ensuring prompt remittance of all taxes to the coffers of government, he urged residents to perform their civic responsibility by paying their taxes regularly and promptly as part of fulfilling their own social contract.

Ogunsanwo therefore, implored the management and staff of the agency to rededicate themselves to their responsibilities even as he pleaded for their support and cooperation in the quest to deliver on increasing the revenue base of the state.

Source: Vanguard