Lagos state government plans to start Taxing influencers and remote workers

In a bid to boost its internal revenue generation, the Lagos State Government has outlined a comprehensive plan to tap into the state’s digital economy sector. The ambitious initiative, which is part of the government’s Lagos New Money Initiatives, aims to rake in ₦200 billion annually from a projected two million individuals.

To achieve this goal, the state government plans to expand its income tax base by including remote workers and digital influencers. This will involve the implementation of a Resident Global Digital Citizen Tax Management System, which will cover everything from the accreditation and licensing of digital economy operators to a comprehensive platform featuring an e-portal, market place, and recovery platform.

The system is expected to cost ₦250 million, with construction, data mining, partnerships, stakeholder engagements, communications, and other aspects of the initiative being factored into the cost. The state government also plans to establish a public data marketplace to license and monetize data from various government services, as well as set up a fintech hub to support digital payments, mobile money, lending, and crowdfunding.

Other initiatives aimed at boosting the digital economy include the establishment of the Lagos State Software Development Center, Lagos State Digital Economy Acceleration Hub, and Lagos State Advertisement Network. The state government also plans to implement the Blockchain and Tokenization Agenda and collaborate with the Federal Government on Digital Service Tax (DST).

According to officials, increasing Lagos State’s internal revenue generation to ₦5 trillion by the end of the current administration requires a comprehensive and innovative approach that leverages technology, strengthens tax administration, expands the tax base, and explores new revenue streams. The goal is to unlock an additional ₦2.73 trillion revenue stream to achieve this target.

The digital economy is projected to generate ₦750 billion alongside the property industry which is expected to generate a whooping ₦1.5 trillion. The informal sector and circular economy are expected to produce ₦460 billion and ₦20 billion respectively.

The EKO Revenue Plus Summit, tagged “Unlocking New Revenue Streams for Lagos State,” will be held on September 25 and 26, 2024, to discuss the details of this initiative.