The Assistant Director, Chartered Institute of Taxation of Nigeria (CITN), Mrs Oso Afolake, says property tax is the main source of revenue generation for the state government to provide adequate local infrastructure.
TBI Africa said Afolake made the assertion while speaking with the News Agency of Nigeria (NAN) in Lagos on Thursday.
She said the Lagos State Government required a huge fund to fix the infrastructure challenges, saying that property tax remained the veritable tool for generating the fund.
Afolake said there was need to restructure the taxation system, particularly the property tax in order to generate the needed fund to addressing infrastructure challenges facing both the state and the nation at large.
She noted that payment of tax was “a compulsory sacrifice/contributions’’ by residents to the state government with a view to increasing 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 one of the most viable states in the world.
“This can be achieved through effective property tax administration and compliance by the residents.
“If property tax is well structured and administered, it adds value to living standards of the citizens through developments in the state,’’ she said.
She, however, said that lack of proper assessment and administration were obstacles to effective property tax system in most states of country.
Afolake called for a comprehensive law on property taxation in most states of the federation to facilitate adequate coordination.
According to her, there is need for periodic review of the Land Use Charge (LUC).
She said that it guaranteed effective operation of property taxation.
“There is need for government to establish an Assessment Appeal Tribunal which shall consist of not less than 17 members.
“There is also need for inter-disciplinary research on how to optimise property taxation in the states, particularly Lagos State.
“It is very important for government to have adequate data on available property 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,’’ Afolake said.
