The Lagos State House of Assembly is considering a new bill aimed at harmonising taxes and stopping the collection of levies by unions and other unauthorised groups across the state.
The proposed legislation, titled “A Law to Enact the Lagos State Harmonised Taxes and Levies Law,” was discussed during a public hearing organised by the House Committee on Finance.
According to the bill, only approved tax authorities would be allowed to assess or collect taxes and levies on behalf of the Lagos State Government and local councils.
The bill also seeks to stop unions, associations and other groups from mounting roadblocks to collect levies, membership dues or transport fees from residents and businesses.
“Under no circumstance shall any payment for taxes, levies, or fees be made or received in cash,” the proposed law stated, adding that payments must be done electronically through approved channels.
The legislation further provides penalties for illegal tax collection. It stated that any unauthorised person found collecting levies could face a ₦2 million fine, three years imprisonment, or both.
It also warned that “any individual or group that mounts a roadblock for the purpose of collecting taxes, levies, fees, or membership dues” could face a ₦5 million fine or prison sentence upon conviction.
Speaker of the Assembly Mudashiru Obasa, represented by Deputy Speaker Mojisola Meranda, said the bill would help remove “duplication, confusion, and multiple taxation” affecting residents and investors.
Chairman of the House Committee on Finance Femi Saheed described the proposal as “not just about revenue generation” but also about transparency and accountability in tax administration.
Officials of the Lagos State Internal Revenue Service and other stakeholders at the hearing pledged support for the reform, saying it would improve the business environment and protect residents from illegal tax demands.
