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A member of the Isolo Hairdressers Association urging members to pay their taxes at the Training of Grassroots Leaders of Informal Sector Associations in Lagos.

Promoting Equitable and Fair Tax Regime for the Informal Sector Workers

The Informal Sector in Lagos State constitutes one of the most dynamic sectors with a huge potential for significantly improving the economic growth of Lagos. There are about 5.58 million people employed in the Informal Sector with an estimated value of N9.87tn.1 Majority of Informal Sector Workers have not been fully captured in the tax net (both at the State and Local Government levels), as the Lagos State realized only N249,424,104.062 (excluding figures generated by Local Governments themselves).

Several challenges abound in the sector from arbitrary tax regimes, multiple taxation, lack of transparency in revenue collection to benefits that would encourage Informal Sector workers to willingly pay their fair share of taxes to non-inclusion of Informal Sector workers in policy formulation.

Community Life Project (CLP), with support from USAID-SACE, is working with Informal Sector Workers and the Government to promote transparency in the sector and increase compliance rate. Part of the outcome of a Research we carried out on Informal Sector Taxation recommended the:

1. Inclusion and Proper Consultation of Informal Sector Workers
2. Consolidation of all Taxes/Rates/Tariffs
3. E-Payment Systems
4. Giving Tax Breaks or Some form of Incentives to Organised Groups:

Click here for a copy of the Research.