The Lagos State Commissioner for Finance, Mr Akinyemi Ashade, on Wednesday said property tax was the main source of revenue generation for the state government to provide local infrastructure.
Ashade made the assertion in Lagos at the International Conference on Property Tax Reform organised by the Department of Estate Management, Faculty of Environmental Sciences, University of Lagos.
Theme of the conference was: “Making Property Tax Work- Reform Strategies for Unleashing the Full Potential (Fiscal and Non-fiscal) of Property Tax for Boosting Internally Generated Revenue (IGR) in Nigeria’’.
The commissioner said the state requires about 15 billion dollars to fix the infrastructural challenges, adding that property tax remains the veritable source for generating the fund.
Ashade said that the conference should be a platform for addressing and proffering solutions to the infrastructural challenges facing both the state and the nation at large.
He said that payment of taxes was “a compulsory sacrifice/contributions’’ by residents to the state government with a view to increasing its revenue generation to meet the required social amenities.
“The ultimate goal is to improve revenue generation of the state so as to make Lagos State number one of the most liveable states in the world.
“This can be achieved through effective property tax administration and compliance by the residents.
“I hope that the conference will add value to infrastructural development and enhance development of the state,” he said.
Earlier, Prof. Abiola Sanni of Tax and Fiscal Matters, University of Lagos, said that lack of proper assessment and administration were obstacles to effective property tax system in the state.
Sanni said there was no comprehensive law on property taxation in the state that would ensure adequate coordination.
According to him, lack of review of the Land Use Charge (LUC) since inception is equally a factor militating against effective property taxation.
“There is need for government to establish an Assessment Appeal Tribunal which shall consist of not less than 15 members.
“There is also need for inter-disciplinary research on how to optimise property taxation in Lagos State.
“It is very important for government to have adequate data on available properties within its jurisdiction to be able to appropriately evaluate and collect the taxes.
“A well designed property tax has the potential to revamp local infrastructure, promote accountability and transparency,” Sanni said. (NAN)
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