Lagos Government To Tax Freelancers And Influencers

The Lagos State Government has proposed an ambitious proposal to broaden its income tax base to include freelancers and influencers, with the goal of generating N200 billion per year.

This effort is part of a larger strategy to increase the state’s domestic revenue by N5 trillion.

“We have identified four core sub-sectors of the state’s economy, with the potential for additional revenue generation to help us achieve an additional IGR of about N2.73 trillion,” the government stated.

These sub-sectors include property, the digital economy, the informal sector, and the circular economy, with energy and IPPs functioning as cornerstones of overall economic development.

Focussing on the digital economy, Lagos State intends to create a resident global digital citizen tax management system.

This system would target remote workers for foreign enterprises, freelancers, gig workers, influencers, and shared economy operators, with the goal of generating N200 billion per year from about two million people.

The system would also include certification and licensing for digital economy practitioners and operators, such as platform owners, e-commerce operators, shared economy platforms, online education platforms, marketplaces, and food delivery services.

Lagos’ digital economy is projected to be around $20-25 billion, accounting for approximately 10% of the state’s GDP.

Additional income targets for the digital economy sector include digitalising government services, data monetisation, the Lagos State Fintech Hub, and the Lagos State Software Development Centre.

Other projects include the Lagos State Digital Economy Acceleration Hub, the Lagos State Advertising Network, the Blockchain and Tokenisation Agenda, and a collaboration with the federal government on digital service tax (DST).

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli