The Lagos State Government on Thursday introduced Electronic Revenue Assurance System (ERA) to enhance collection of consumption tax.
The electronic device is in accordance with the Hotel Occupancy and Restaurant Consumption (Fiscalisation) Regulation signed into Law on Dec. 7, 2017.
The introduction of the electronic device was done at a stakeholders meeting in Lagos.
The stakeholders include owners of hotels, restaurants, night clubs, drinking pubs, event centres and hospitality venues in Lagos state.
In a keynote address, the state Gov. Akinwunmi Ambode said that the regulation was to enable the state to put in place efficient machinery to enhance tax collection.
Ambode who was represented by his Deputy, Dr Idiat Adewale, decried under-payment and non-remittance of tax to the statec government’s .
He called for high commitment from residents and business owners in the payment of taxes.
‘’Taxation is one of the ways in which government is able to finance its activities.
‘’Funds are required to enable government to actualise its objective of provision of adequate infrastructure and services for the residents of the state at levels expected within a mega city.
‘’Our objective is to rely less on federal funding and more on self-funded.
”That is why we are leveraging on technology – the fiscalisation project – to drive economic growth and development, ” he said.
Ambode urged hoteliers and bar, restaurant and event centre owners to integrate their systems with the state internal revenue service server, to facilitate monitoring of tax transactions and remittance.
Mr Olusegun Banjo, the state Commissioner for Economic Planning and Budget, said that the regulation would enable the state to plan and build its revenue base.
‘’This regulation will help us build our revenue properly to fill the gap in our economic planning as well as match our income and expenditure,” he said.
Mr Akinyemi Ashade, the state Commissioner for Finance, said that the state budget performance for 2017 was 82 per cent in spite of harsh economy.
Ashade said that, with the regulation, there would be increased revenue to fund and deliver high profile projects targeted for this year to make life easier for the state residents.
In his remarks, Mr Ayodele Subair, Chairman, Lagos State Internal Revenue Service, said that the ERA system would ensure efficiency and transparency in the collection of consumption tax in the state.
