Kaduna revenue boss: Tax bill will take away over 80% of PAYE, eliminate consumption tax

The Executive Chairman of the Kaduna State Internal Revenue Service (KADIRS), Mr. Jerry Adams, has said that the Tax bill currently being debated at the National Assembly will take away over 80% of PAYE and eliminate consumption tax, among others. He said the agency will need to look elsewhere while thinking outside the box for […]

The Executive Chairman of the Kaduna State Internal Revenue Service (KADIRS), Mr. Jerry Adams, has said that the Tax bill currently being debated at the National Assembly will take away over 80% of PAYE and eliminate consumption tax, among others.

He said the agency will need to look elsewhere while thinking outside the box for it’s revenue generation.

He, however, disclosed the agency’s collection improved from N62 billion in 2023 to an impressive N70 billion in 2024.

Speaking at the annual performance review, work plan and strategic staff retreat in Kaduna, the chairman said despite the challenges posed by economic shifts and policy changes, staff commitment remained unwavering.

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According to the chairman, “As we chart our course for the year ahead, we 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. The NTB 2024 introduces significant reforms aimed at enhancing tax administration, broadening the tax base, and fostering a more business-friendly environment. While these reforms align with national economic objectives, they also pose certain challenges for subnational revenue generation.

“One of the major implications of the NTB 2024, is 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 projections and require us to explore alternative avenues to sustain and expand our revenue base.”

He noted that the Executive Management Committee is carefully analyzing the tax bill and its adverse effects on the state while formulating strategic responses to mitigate any negative impact saying, “The bill will take away over 80% of PAYE and eliminate consumption tax, among others, hence, we need to look elsewhere while thinking outside the box.”

He highlighted that some of the key areas of focus in 2025 will be taxation of the digital economy, which he said, has vast potential, property tax, and for high-net-worth individuals.