In what can best be described as a partnership with the Joint Tax Board (JTB), the Lagos State Internal Revenue Service (LIRS) said it is planning to integrate the LASG-EBS Taxpayers Identification Digit (PID) module into the nationwide Tax Identification Number (TIN).
According to a circular issued by the Lagos State Government and obtained by Nairametrics, this is expected to facilitate the State’s ease of doing business agenda.
Overview of the revolutionalised TIN: The TIN is a unique identifier for private individuals and corporate entities who pay taxes. TIN helps to better organise tax remittances by taxpayers. Specifically, the TIN module is biometrics-based. Its main purpose is to ensure the unique identification of taxpayers.
The numbers are system-generated and issued to individuals and registered companies for proper identification and verification.
Why TIN for tax remittance? TIN engender ease of doing business which is an integral part of the business-friendly initiative of both the Lagos State Government and the Federal Government. This is believed will help reduce the cost to both taxpayers and tax authorities.
Why does this matter? We understand that the TIN is put in place to facilitate seamless sharing of taxpayers’ data for JTB, State Board Internal Revenue Services (SBIRS’s) and other stakeholders. Below are the benefits of the proposed TIN integration process;
- It will facilitate a seamless sharing of taxpayers’ information.
- It eliminates multiple taxpayers IDs.
- It eases the tax payment process.
- It is expected to simplify the tax payment process.
Note that the existing Bank Verification Number (BVN), which most economically active residents/taxpayers subscribe to, affords the LIRS the fastest and least disruptive route to achieving the planned integration with the JTB TIN system.
About LIRS: LIRS is the major revenue generating Agency of the Lagos State Government saddled with the responsibility of collecting taxes.
Over the years LIRS has increased the State’s Internally Generated Revenue (IGR) by executing various pioneering programmes and implementing strategies, which have impacted positively on revenue generation and collection.
The IGR moved from a monthly average of about 600 Million Naira in 1999 to approximately 20.5 Billion Naira in 2013, thereby making Lagos State less dependent on proceeds from the Federation Account.
