The Lagos State Government has disclosed its plans to raise ₦200 billion yearly from about two million people through digital economy sector tax.
To achieve this, the southwest state will add remote workers and digital influencers to its current income tax base, and enhance its revenue collection process with digital solutions.
Per the excerpt document for the oncoming EKO Revenue Plus Summit, tagged “Unlocking New Revenue Streams for Lagos State” and slated for September 25 and 26, 2024, the development is part of the state government’s broader strategy to raise ₦5 trillion internally generated revenue (IGR) from four sub-sectors — the digital economy, property industry, informal sector, and circular economy.
In the digital economy, the Lagos State government plans to implement a Resident Global Digital Citizen Tax Management System that targets remote workers, foreign firms, and digital influencers.
The system will cover everything from the accreditation and licensing of digital economy operators, complete with a comprehensive platform that features e-Portal, Market Place, and Recovery Platform.
According to the document, portal construction, data mining, partnerships, stakeholder engagements, communications, and other aspects of the new initiative are expected to cost ₦250 million.
Additional revenue targets for the digital economy sector include plans to establish a public data marketplace to license and monetise data from various government services. The state also intends to set up a fintech hub to support digital payments, mobile money, lending, and crowdfunding.
Other plans for the digital economy include the establishment of the Lagos State Software Development Center, Lagos State Digital Economy Acceleration Hub, and Lagos State Advertisement Network; implementation of the Blockchain and Tokenization Agenda; and collaboration with the Federal Government on Digital Service Tax (DST).
“Increasing Lagos State IGR to 5 trillion naira in the life of the current administration requires a comprehensive and innovative approach that leverages technology, strengthens tax administration, expands the tax base and explores new revenue stream options, especially in the non-tax areas, while optimising the existing processes,” part of the document read.
The move to significantly boost the state’s IGR is part of the Lagos New Money Initiatives. The goal is to unlock an additional ₦2.73 trillion revenue stream to raise the IGR to ₦5 trillion.
While the digital economy is projected to generate ₦750 billion, the property industry is expected to add ₦1.5 trillion. The informal sector and the circular economy are expected to contribute ₦460 billion and ₦20 billion respectively.
Source: Nairametrics
Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it.
Drop your comment in the section below, and don’t forget to share the post.
Never Miss A Single News Or Gists, Kindly Join Us On WhatsApp Channel:
https://whatsapp.com/channel/0029Vad8g81Eawdsio6INn3B
Telegram Channel:
https://t.me/gistsmateNG
