As part of efforts to ensure the realization of a target of N45bn as its annual Internally Generated Revenue, IGR, the Kaduna State Government has announced its decision to impose tax on petty traders such as those frying beans cake (Akara) as well as traders selling tomotoes and other petty items.
The Executive Chairman of the Kaduna State Internal Revenue Service, KADIRS, Mallam Muktar Ahmed, who disclosed this on Monday, stated that those involved in petty sales would make their payment based on what he called “presumptive tax”according the size of their business and sales.
He revealed that there had been meetings with unions and business groups to that effect.
Mallam Ahmed also disclosed that N20bn was targeted to be generated from the MDAs while N25bn is targeted to be generated from the state internal service.
The Chairman, while briefing newsmen in Kaduna, added that, “It is no longer news that the dip in the nation’s oil earnings has affected allocations from the federal account, this scenario has been on for months foisting a serious crunch on federal, state and local government allocations.
“Consequently, it has become pertinent for states to take on the issue of Internally Generated Revenue, IGR, seriously as it is the only way to cushion the effects of falling federal allocations and for states to be self-sustaining.”
He stressed that in view of the set target and the promise of delivering dividends of democracy to the good people of Kaduna State, the Governor, upon assumption of office, hit the ground running by setting up a committee headed by Mrs Ifueko Omogui Okauru , a seasoned tax administrator and one time Executive Chairman of the Federal Inland Revenue Service, FIRS, who was mandated with the task of reviewing the tax and revenue generating mechanism in the state in order to widen the tax net and also collect all potential revenues within the state.
According to the KASIRS chairman,”The committee submitted its report in August 2015 and based on the recommendations of the committee and in recognition of the need for legislative empowerment of the State board of Internal Revenue, an executive bill known as the Kaduna State tax (Codification and consolidation) law, 2016 was sponsored and passed by the Kaduna State House of Assembly and assented to by the governor.
“The Law establishes the Kaduna State Internal Revenue Service and seeks to consolidate all taxes payable in the state in one law and in one document.”
The law, he said, “prohibit the collection of cash revenues and automate the operations, harmonise and centralise all revenue collections, Simplify payment, introduce investor friendly tax code, promote transparency and accountability, eliminate multiplicity of taxes, encourage voluntary compliance, ensure improved and professional service delivery, provide taxpayers with information on precise taxes payable.
“We will enforced non cash collection in all revenue offices across the state, we will also enforced the adoption of genuine third party insurance across the state, entered into an arrangement with interswitch to facilitate the deployment of 100 PoS terminals in addition to the existing ones in preparation for expanding revenue collection across the state.
“We will set in motion the quick recovery of tax liabilities amounting to N12bn by undertaking recovery drives to selected federal government institutions where we parleyed with the management of the institutions.”
He informed that as part of measures to ensure that all stakeholders concerned are carried along, “We have met with over sixty trade unions and associations with respect to reaching a mutual agreement on rates that will be charged their members under the presumptive tax regime. We have also held talks with IT companies in preparation for full automation of the service.
“Discussions are also ongoing with banks to set up kiosks in revenue collection centers across the state. We have directed the 23 local governments and MDAs in the state to immediately implement the new law especially on non-cash revenue collection. Plans are ongoing to create codes for revenue lines under Local Government Councils.
“We have in collaboration with interswitch brought the Kaduna State Water Board billing system onto the pay direct system and are working to interface their billing system with the platform.
“We have also deployed PoS’ to all government hospitals across the state, this is in order to stop cash collections of bills and to ensure proper charging and payment of bills.
“We are also currently working with Messrs Compliance Professionals Plc to restructure both the staffing and operations of the service to attain the highest level of efficacy.”
He reiterated that the mandate was to place the Internal Revenue service to a standard at par with global best practices in tax administration, stressing that “With the support of the good people of Kaduna State we shall achieve these lofty goals and together make Kaduna State great again.”
