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Fashola Signs New Law On Approved Levies For Local Government Councils In Lagos

Jul 12, 2010 - Lagos State Governor, Mr. Babatunde Fashola (SAN) on Monday assented to a bill that prescribes approved levies for collection at all Local Government Councils and Local Council Development Areas across the State with a charge to the citizens to always resist the temptation of parting with money to make quick payments when accosted.

Governor Fashola who spoke before a gathering of members of the State Executive Council and helmsmen at the 57 Local Government Councils and Local Council Development Areas at Lagos House, Ikeja said residents should always insist on making any payments due to Local Governments to the banks instead of individuals.

He explained that for a long time, a number of residents would prefer to accomplish tasks by going through middle men which has often given room to extortionists who terrorize the citizenry, adding that people should do things by themselves.

The Governor reiterated that the new law will close the gap existing between the government and the people as well as eliminate those who have exploited the gap to unleash uncomplimentary acts and undeserved pains on members of the public.

Governor Fashola added that the law which has taken over two years to get through is particularly important because for a long time the continued misgiving between the State Government and the residents has been festered by activities of people who pretend to be government officials when they are not.

He said part of the complaints of the Organised Private Sector (OPS) about collection of levies and taxes in Lagos is that the companies do not know the specific taxes they are supposed to pay to the third tier of government, adding that if the rates are known, the payments could be factored into budgets for the companies on a yearly basis.

He affirmed that it was not enough for the government to always say such illegal collections did not emanate from it or even have its blessings but demonstrate that such levies are illegal by publicizing an approved list of levies collectable.

He explained that just like States, Local Governments are also constitutionally recognized and empowered to raise levies and taxes, and urged the Chairmen of the Local Government Councils to put the new law in the public domain to enable the people pay and also resist illegal taxes.

According to the Lagos State Governor, the law on list of approved levies in Local Governments is also a business friendly law that will allows small businesses which are most vulnerable to illegal collections to thrive.

He said as a government, the commitment must be to continue to empower growth of small businesses across board.

He also urged the helmsmen at the Local Council levels to maximize the benefits of the new law by familiarizing themselves with the contents of the law and ensure that its contents is widely disseminated especially for the benefit of people in the rural areas.

Governor Fashola expressed his appreciation to the Speaker and members of the State House of Assembly for their collaborative efforts in ensuring a passage of the law as well as the Chairmen of the 57 Local Government Councils and Council Development Areas who supported the idea behind the enactment of the law.

Earlier, while giving an insight into some of the provisions of the new law, Special Adviser to the Governor on Revenue and Taxation matters, Mr Rahman Ade Ipaiye said the bill which emanated from the State House of Assembly is aimed at enthroning an orderly tax system in Lagos State.

Mr Ipaiye added that the law empowers Local Governments to sanitize the revenue administration within their locality and also nominates the Local Government Councils as authority to collect levies in all council areas.

He added that the law also provides that whatever levies or taxes is not listed in the schedule would be termed an illegality and whoever is found to be administering them would face the full wrath of the law.

The Special Adviser also informed that the new law recognizes the State Joint Revenue committee to ensure harmony in terms of revenue at state levels as well as fixing rates that would be charged in terms of levies at Local Government levels and which must be publicized.

According to Mr Ipaiye, in certain instances, Local Governments can make use of revenue agents, but must fulfill certain minimum requirements prescribed by the Joint Revenue Committee before being allowed to work.

He added that it is illegal for anyone to act on behalf of any Local Government in collecting revenue when he has not been mandated by the Joint Revenue Committee, adding that such a person must be clearly identified.

The law prohibits any form of road closure for the purpose of collecting levies and prescribes a fine of N500,000.00 or a three year jail term for anyone who purports to collect revenue on behalf of a Local Government without having the mandate of the State Joint revenue committee to do so, Mr Ipaiye informed.

He described the new law as a double edged sword which would not only assist members of the public and Local Government Councils but would also do away with the activities of unscrupulous conmen who masquerades as officials representing the councils.

Also speaking at the event, the Special Adviser to the Governor on Political and Legislative Powers, Hon AbdulHakeem AbdulLateef traced the genesis of the new law on approved levies to the taxation stakeholders conference held in December 2007 where several taxpayers complained about various issues including arbitrary levies.

He said it was in a bid to address the complaints that the State Governor set machineries in motion to bring about the new law which will sanitise the taxation and levies collection system in Local Governments across the State.

The event was witnessed by members of the State Executive Council including the Commissioner for Local Government and Chieftaincy Matters, Prince Rotimi Agunsoye and Chairmen of the Local Government Councils and Local Council Development Areas in the State.