GOVERNOR Akinwunmi Ambode yesterday signed the N662.588b 2016 Lagos State Appropriation Bill into law, appealing to the residents, particularly those in the informal sector, to pay their taxes as at when due.

According to Ambode, tax remittance is a civic duty and most critical at this time, if the government must meet her budgetary projections and fulfill her part of the social contract.

The governor, at the brief ceremony held at the State Banquet Hall, Lagos House, Ikeja, said that the budget would be driven by Internally Generated Revenue (IGR) in the light of the falling crude oil prices and attendant drop in Federal Allocation as well as economic challenges. He urged tax payers to fulfill their civic obligations, promising that no stone would be left unturned in delivering value for every kobo spent.

“I will commend this Budget to all Lagosians and enjoin them to continue collaborating with us in building the Lagos of our dreams,” he said. Ambode promised that the budget would be faithfully implemented in line with the determination of his administration to make Lagos work for all, irrespective of age, gender, tribe or status.

He said: “The 2016 budget of N662.588 billion will enable our government focus on the present challenges of security, traffic gridlock resolution, as well as physical and infrastructural developments which have thrown up new challenges quite different from our past experience”.

The governor thanked the House of Assembly for speedy passage of the bill which he presented to the lawmakers on December 17 and was passed on December 31, saying it was no mean feat, considering the long hours spent and meticulous scrutiny provided by the House Committee on Appropriation.

The Commissioner for Economic Planning and Budget, Akinyemi Ashade, explained that the budget size of N662.588 billion would be funded from a total revenue estimate of N542.874 billion with the balance of N119.714 billion to be funded through a combination of internal and external loans, including a World Bank DPO 3 loan which could not be accessed in 2015.

Ashade said the Lagos Internal Revenue Service (LIRS) is expected to generate N300 billion equivalent to 78 per cent of the total IGR, adding that while the state government does not intend to introduce new taxes, efforts would be made towards bringing more citizens into the tax net, especially residents in the informal sector, as well as through the adoption of an automated process to block leakages.

Chairman of the LIRS, Olufolarin Ogunsanwo, confirmed that no fewer than 5 million people are currently in the tax net, though the projection is in the neighbourhood of 8.5 million.