The Lagos State government is planning to introduce a tax for remote workers as part of its efforts to increase revenue. This initiative is expected to bring in an estimated N200 billion from remote workers and the digital ecosystem.

A recent document from the Eko Revenue Plus Summit revealed that the government aims to raise N5 trillion in internally generated revenue (IGR) from four major sectors, including the digital ecosystem, during the current administration.

“Increasing Lagos State IGR to 5 Trillion Naira requires a comprehensive and innovative approach. This includes leveraging technology, strengthening tax administration, expanding the tax base, and exploring new revenue streams, particularly in non-tax areas, while optimizing existing processes,” the government stated.

Lagos State has been a leader in IGR, generating the highest internal revenue of N651 billion in 2022, according to the National Bureau of Statistics. The new tax on remote workers is part of a broader strategy to sustain and enhance this growth, ensuring the state continues to thrive economically.

As the digital economy grows, more individuals and businesses are operating remotely. By taxing remote workers, Lagos State aims to tap into this expanding sector, ensuring it contributes to the state’s development and infrastructure.

This move is part of a larger vision to modernize tax collection and administration in Lagos, making it more efficient and inclusive. It highlights the government’s commitment to leveraging technology and innovative solutions to meet its financial goals and improve public services for all residents.

Stay tuned for more updates on how this new tax policy will be implemented and what it means for remote workers in Lagos State.