The Lagos State government has announced a plan to generate N200 billion annually by expanding its income tax base to include remote workers and utilizing digital solutions for improved revenue collection. This initiative is part of a broader goal to increase the state’s internally generated revenue (IGR) to N5 trillion under Governor Babajide Sanwo-Olu’s administration.
#### Key Points:
1. Digital Economy Taxation:
– Introduction of a Resident Global Digital Citizen Tax Management System.
– Targeting remote workers, foreign firms, and digital influencers.
– The system will include accreditation and licensing of digital economy operators, supported by an e-Portal, Market Place, and Recovery Platform.
– Estimated budget for this initiative is N250 million.
2. EKO Revenue Plus Summit:
– Scheduled for September 25-26, 2024, with the theme “Unlocking New Revenue Streams for Lagos State”.
– The summit will discuss strategies to raise N5 trillion IGR, focusing on technology and expanding the tax base.
3. Revenue Streams:
– The digital economy sector aims to generate N200 billion annually from about two million people.
– Four core sub-sectors identified for additional revenue generation: Property Industry, Digital Economy, Informal Sector, and Circular Economy.
– The Property Industry is expected to generate N1.5 trillion.
– The Digital Economy is projected to add N750 billion.
– The Informal Sector is anticipated to bring in N460 billion.
– The Circular Economy is expected to contribute N20 billion.
4. Goals and Implementation:
– The initiative seeks to leverage technology, strengthen tax administration, and explore new revenue streams.
– Plans to create a substantial financial foundation for Lagos State through innovative approaches and optimization of existing processes.
Lagos State’s ambitious plan reflects its commitment to leveraging the digital economy and other sectors to significantly boost its revenue, positioning itself as a forward-thinking and financially robust state.
