Lagos State is on the cusp of a financial transformation as the government unveiled a bold strategy to double its Internally Generated Revenue (IGR) to ₦5 trillion by taxing remote workers amongst others. This ambitious plan, detailed in the synopsis for the upcoming EKO Revenue Plus Summit, hinges on four key sectors: Property, Digital Economy, Informal Sector, and Circular Economy.
A cornerstone of this revenue-boosting initiative is the digital economy. Lagos State is poised to become a digital tax haven by introducing a Resident Global Digital Citizen Tax Management System. This system will cast a wider tax net, capturing remote workers, foreign firms, and digital influencers operating within the state’s jurisdiction.
Beyond taxation, the government plans to monetize public data through a data marketplace, establish a fintech hub, and foster a thriving software development ecosystem. These initiatives, coupled with investments in digital startups and an advertising network, are expected to contribute significantly to the state’s coffers.
Property, Informal Sector, and Circular Economy: Untapped Potentials
While the digital economy takes center stage, Lagos State is also determined to maximize revenue from traditional sectors. The property industry, a major contributor to the state’s economy, is targeted for increased tax compliance and valuation.
The informal sector, which employs a substantial portion of the population, will also be brought into the tax net through a combination of education, digitalization, and incentives. The government aims to formalize businesses and encourage tax compliance while providing support and training.
To promote sustainability and resource efficiency, Lagos State is exploring opportunities in the circular economy. By recovering and reusing materials, the state aims to generate revenue and reduce waste.
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Doubling the IGR is undoubtedly an ambitious goal. The government acknowledges the challenges posed by tax evasion, informal economy, and infrastructure limitations. To overcome these hurdles, a comprehensive strategy involving technology, education, and enforcement is being implemented.
The EKO Revenue Plus Summit, scheduled for September 25th and 26th, will serve as a platform to discuss the state’s revenue generation strategy in detail. Experts, policymakers, and stakeholders will converge to explore innovative solutions and foster collaboration.
As Lagos State embarks on this ambitious journey, the potential impact on the state’s economy and the lives of its citizens is immense. Increased revenue could fund critical infrastructure projects, improve public services, and create job opportunities. However, the success of this initiative hinges on effective implementation, political will, and the cooperation of taxpayers.
