Ondo State Governor, Lucky Aiyedatiwa, has announced that the state is set to launch a digital platform designed to streamline tax collection and other government-related payments.
This initiative is part of the government’s strategy to boost revenue generation and enhance accountability.
The announcement followed a demonstration of the platform by consulting firm BBA Consult Ltd. at the governor’s office in Akure.
The State’s Internal Revenue Service (IRS) has partnered with BBA Consult Ltd. to implement the project.
“This new platform will not only simplify tax payments but also significantly increase revenue for Ondo State,” Aiyedatiwa stated. “By adopting this system, the government aims to reduce leakages, improve compliance, and create a more accountable tax structure.”
Increased Revenue
The governor emphasized that the additional revenue generated from this initiative would be channeled toward crucial infrastructure projects across the state.
He encouraged residents and businesses to embrace the digital system, assuring them of its security, user-friendliness, and long-term benefits for Ondo’s economic growth.
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 assured that all records would remain confidential and accessible only to the individual taxpayer.
Abisola further emphasized, “The digital system is designed to eliminate bottlenecks associated with manual payments, ensuring seamless transactions across various sectors.”
What You Should Know
This move places Ondo State at the forefront of adopting innovative solutions in tax administration, in line with the federal government’s recent tax reforms.
Last week, the Nigerian House of Representatives passed four key tax reform bills after extensive discussions.
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, with a target of 15% by 2030.
These reforms aim to streamline tax administration, optimize revenue collection, and strengthen Nigeria’s economy.
The federal government’s efforts reflect a broader push to enhance fiscal policies and address inefficiencies in revenue collection.
The House of Representatives noted that Nigeria’s VAT rate of 7.5% would remain unchanged as the Tax Reform Bills were adopted as a working document.
The finance committee of the House recommended repealing the Federal Inland Revenue Service and establishing the Nigeria Revenue Service, which will be responsible for collecting revenues for the Federal Government of Nigeria.
For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.
