Pulse.ng : Kaduna Internal Revenue Service generates N70b tax in 2024, targets N112b for 2025

By Sani Idris

The Executive Chairman of the Kaduna State Internal Revenue Service (KADIRS), Jerry Adams, has said that the service was able to collect N70 billion tax in 2024, while targeting N112 billion for 2025.

Adams said this on Monday in Kaduna at a two-day annual performance review, work plan and strategic retreat 2025.

He said that it was commendable that KADIRS collection improved from N62 billion in 2023 to an impressive N70 billion in 2024.

He explained that the KADIRS alone was tasked to generate
N56 billion from the years' target.

On the Nigerian tax reform bills 2024 and its implications, Adams said the service must examine the tax reforms vis a viz the Nigerian tax bill 2024 currently being debated at the National Assembly and its implications on state revenue generation.

According to him, the tax reform bills introduced significant reforms aimed at enhancing tax administration, broadening the tax base, and fostering a more business-friendly environment.

While the reforms align with national economic objectives, the KADIRS boss said they also pose certain challenges for subnational revenue generation.

He mentioned some of the major implications of the reform bills to include the modification of tax rates and the reallocation of tax revenue streams between federal and state governments.

"This may lead to adjustments in our revenue projection and require us to explore alternative avenues to sustain and expand our revenue base.

"The Executive Management Committee of the service is carefully analysing the tax bill and its adverse effects on the state while formulating strategic responses to mitigate any negative impact.

"The bill will take away over 80 per cent of PAYE and eliminate consumption tax, among others. Hence, we need to look elsewhere while thinking outside the box,"he said .

Adams, therefore, said some of the key areas of focus of the KADIRS in 2025 would be taxation of the digital economy, which has vast potential and property tax.

He disclosed that for high-net-worth individuals, the service have signed an MOU with the Nigerian Financial Intelligence Unit (NFIU)for data collection and collaboration to ensure that the set of people are properly captured and dragged into the tax net.

He added that the service would leverage technology in its ongoing digitisation efforts to block leakages and enhance transparency using the PAYKADUNA portal, its one-stop shop for all state revenue payments.

He equally said they would enhance and prioritise interagency collaboration to ensure they meet N112 billion target for 2025.

Speaking on staff welfare, Adams said for the first time in many years, the Executive Management Committee approved the payment of a 13th-month salary to all staff, which was disbursed in December 2024.

"This, along with increased imprest payments, the provision of working tools and other welfare packages will continue going forward. However, as we enjoy these benefits, much is expected from us in terms of dedication, commitment to duty as any act of indiscipline will not be tolerated,"he warned.

The KADIRS boss, therefore, explained that the retreat was not just a forum for discussions, but a platform for decision-making and strategic alignment.

He noted that the insights and resolutions from deliberations would not end at the retreat, but imperative that all unit heads and area revenue officers cascade the key takeaways to their staff.

He urged taxpayers to comply voluntarily, for the development of the state and its residents in general.

Adams thanked Governor Uba Sani for his unwavering support to the Service and the political will he has ensured in the tax ecosystem.

He also thanked the service Executive Management Committee and all staff for their hard work, resilience, and dedication in the past year which was instrumental in ensuring the financial sustainability of the state.

The Special Adviser to Governor Sani on Economic Matters, Ahmed Haruna, described the KADIRS as the engine room of the state.

He urged the KADIRS to to be more diligent, hardworking and ensure more synergy with other government agencies to achieve its targets, while putting into consideration the new tax bill by working better towards boosting the state's internally generated revenue.

Also, the Accountant General of the state, Bashir Zuntu, advised the KADIRS to prioritise strategic revenue planning and management.

Zuntu, represented by the Director Funds at his Office, Yahaya Saidu, said the KADIRS must diversify revenue streams, improve tax collection efficiency, and enhancing transparency and accountability.

He noted that the new tax bill presents both opportunities and challenges for the state.

He recommended an establishment of a high-level task force to analyse the implications of the bill and develop strategies to mitigate any adverse effects on revenue generation.