Kaduna State Announces N17bn IGR In 2016, Targets N50.2bn In 2017

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el-rufai

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Muktar Ahmed, the Chairman of the Kaduna State Internal Revenue Service, KDIRS, said the state government generated more than N17 billion as Internally Generated Revenue (IGR) in 2016.

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He told the News Agency of Nigeria in Kaduna on Sunday that the state government was now targeting N50.2 billion IGR in 2017, an average of N4.1 billion monthly.

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He said that N17 billion generated in 2016 represented an increase of about 50 per cent from the N11.5 billion generated in 2015.

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He attributed the increase in revenue profile of the state to the recent reform in revenue collection, particularly the new tax law that established the KDIRS in March 2016.

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He added that the law had among other things, harmonised and automated all revenue collection in the state.

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He said that “the law has abolished physical collection of cash by any staff of the service.

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“Every tax payer now pays directly to the bank. This has helped in blocking leakages.”

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The chairman explained that the state was able to double its IGR between N600 and N800 million a month to an average of N1.4 billion per month, courtesy of the new law.

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“When we came on board, the monthly collection was between N600 and N900 million, but from the time I took over in January 2016, it peaked at two billion in December.

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“It went up to 1.6 billion in June and July, and gone as high as N2.1 billion in December, but on the average, the monthly collection stood at N1.4 billion.

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“This was achieved by not imposing a single tax; the new tax law reduces some tax rates. What we did was to simply improve efficiency in tax collection.

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“What was happening in the past was that most of what government was collecting as revenue never went to government accounts.

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“The process was sloppy and there were lots of diversion of resources.

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“The law, therefore, closed the gaps, such that only the state revenue service is empowered to collect revenue.”

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The chairman also said that the administration had restored confidence in tax payers through massive execution of people oriented projects across the state.

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According to him, tax payers are now responding because they are seeing where their money is being invested in.

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Mr. Ahmed said the state government would carry out massive awareness on tax payment and where to pay.

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He said “we are currently renovating our offices to ease the pains of doing businesses, by ensuring that our staff and clients are comfortable.

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“On the challenges of the automated revenue collection, particularly in places where there are no banks, money agents certified by the Central Bank of Nigeria will be deployed.”

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