Ondo State Governor, Lucky Aiyedatiwa, has announced the state’s readiness to roll out a digital platform aimed at streamlining tax collection and other government-related payments.
This innovation is part of the government’s strategy to enhance revenue generation and improve accountability.
The announcement was made on Monday after a demonstration of the platform by consulting firm, BBA Consult Ltd. in the governor’s office in Akure.
The State’s Internal Revenue Service has a working agreement with the firm to implement the project.
“This new platform will not only make tax payment easier but also significantly enhance revenue generation for Ondo State,” Aiyedatiwa stated.
“By leveraging this system, the government aims to curb leakages, improve compliance, and create a more accountable tax structure.”
Increased Revenue for Infrastructure Development
The governor emphasized that the additional revenue from this initiative would be directed toward critical infrastructure projects across the state.
He urged residents and businesses to adopt the digital system, assuring them of its security, ease of use, and long-term benefits for Ondo’s economic development.
Speaking on behalf of BBA Consult Ltd., Maryam Abisola, the firm’s Director, explained that the platform assigns each taxpayer a unique identification number linked to their personal profile, which includes details such as phone number, address, and age.
She highlighted that all records would remain confidential and accessible only to the individual taxpayer.
Abisola further stated, “The digital system is designed to eliminate bottlenecks associated with manual payments, ensuring seamless transactions across various sectors.”
What you should know
This move positions Ondo State as a leader in adopting innovative solutions in tax administration, aligning with the federal government’s recent tax reforms.
- Last week, the Nigerian House of Representatives passed four key tax reform bills after extensive deliberations.
- The reforms include the Joint Revenue Board of Nigeria (Establishment) Bill, the Nigeria Revenue Service (Establishment) Bill, and the Nigeria Tax Bill, 2024.
- Among other provisions, the Nigeria Tax Bill outlines a phased increase in the value-added tax (VAT) rate, starting from 7.5% to 12.5% between 2026 and 2029, and reaching 15% by 2030.
- These reforms aim to harmonize tax administration, optimize revenue collection, and bolster Nigeria’s economy. The federal government’s efforts reflect a broader push toward enhancing fiscal policies and addressing inefficiencies in revenue collection.
The House of Representatives noted that Nigeria’s Value Added Tax (VAT) of 7.5% will remain unchanged as it adopted the Tax Reform Bills as a working document.
The House of Reps finance committee recommended repealing the Federal Inland Revenue Service to establish the Nigeria Revenue Service, which would be responsible for collecting revenues for the Federal Government of Nigeria.
