Electronic Tax Card: Lagos Projects N10 bn Revenue
By Shaka Momodu
Lagos State Government has said it hopes to raise its tax revenue from current N3 billion monthly to N10 billion by blazing the trail with the application of information technology to tax administration through the introduction of the electronic tax card and website for tax payers.
Launching the first electronic tax card and tax website in Nigeria, Lagos State Governor, Bola Tinubu said it would harness the tax resources of the state and put tax touts out of business.
He said Nigerians were willing to pay taxes if they are convinced that the taxes are being utilised for social services.
The new initiatives include the electronic Tax Clearance Certificate (e-TCC) to replace the paper certificate, the Automated Revenue Receipt (ARR) and the Lagos State Electronic Banking website (lasg-ebs-rcm.com).
He declared that the introduction of information technology has enhanced the capacity of his administration to launch a new revolution in the civil service, he said the administration met N600 million monthly Internally Generated Revenue (IGR) in 1999.
Noting that with the new system, the revenue would move to N10 billion, Tinubu said in the past five years, the state's IGR moved from N600 million to N1 billion in six months and N2 million in the first 12 months and now stands at N3 million.
Similarly, he remarked that although he met a N7 billion budget in 1999, his administration raised the budget to 14 million in 2000 and further to N48 billion in 2003.
He said the increase in the budget showed massive investment of his administration in public infrastructure and announced that the United Nations just released a report which states that the Lekki Corridor in Lagos State is the busiest mortgage investment corridor in the world today.
While warning tax touts to abandon their nefarious activities and approach the government so that they can be retrained for more legitimate vocations, Tinubu said the electronic tax card
The e-TCC is a hybrid card comprising a smart chip on the front, a magnetic strip at the back, passport photograph of the payer and their name, a micro tint text print of LASBIR, payer's thumb print, signature and PID and a hologram showing validity.
The Automated Revenue Receipt (ARR) also replaces the old receipt except for payments below N2000.00 and has such features as a computer generated numbering and coding system, in-built facilities for controls and continuous transaction trail transparent print of the coat of arms underground micro tint text print of LASG and processor colour of the Coat of Arms.
Speaking at the launch at the Eko FM Multi Purpose Hall, Ikeja Tinubu described the initiatives as a great revolution that is capable of translating the processes of government and aligning it with the realities of the IT age while also leading to enhanced productivity and transparency.
He said it was only through an efficient tax system, which is honest and open that the public can be convinced of the need to pay taxes adding too that the" payment of taxes is a necessary condition for development in a democracy."
"It is only a deceitful politician who will pretend to people that they can have good roads, schools, qualitative healthcare and other facilities without paying taxes. We do not belong to that class. Tax, therefore, represents a critical pillar of public finance that must be strengthened for government to make the desired impact on the lives of the people. Even Awo urged the people to pay taxes that he imposed in the name of developm,ent just as I urge you todo today" he said.
Saying his administration had kept faith with the people in terms of the promises that he made, the governor said in the last five years he has ensure the transformation of the healthcare delivery system through such programmes asthe Blindness Prevention Programme, Free treatment for the elderly aged 60+, the under 12, and the pregnant women.
In his opening remarks the Commissioner for Finance Dr. Ismaila Adebayo Adewusi described the introduction of the new internally gnerated revenue security document as part of the administration's plans to institutionalize "e-governance in the Lagos State and also set clear example of transparency and accountability in the management of the resources of the state.'
According to him, apart from being the first of its kind in the country, the e-TCC will not only enhance revenue (IGR) through the efficient management of the PAYE and the direct assessement but also widen the tax net while providing a tax history of the payer.
He further said a 24 hour online facility for the verification of the e-TCC has been put in place by the state government.
Presenting an overview of the documents, the Managing Director of Alpha Beta Consulting Ltd. Mr. Olumide Ogunmola said the state has through the new initiative created a revolution which has led nine other states in the federation to sign on to implement.
He said the e-TCC will serve as a personal identification card, with high level of the data integrity which not only eliminate doubts but ensure prompt processing of certificates adding that with his high caliber features the taxpayer's interest is assured.
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