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Published On: Fri, Oct 11th, 2019

30,000 companies in Kaduna don’t pay taxes -Revenue boss

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From: Femi Oyelola, kaduna

The Chairman, Kaduna State Internal Revenue Services (KADIRS),Zaid Abubakar has said over 30,000 viable companies in Kaduna State don’t pay their taxes while a few that pay don’t pay what they are supposed to pay.
He made the assertion when he received group of civil society organisations under Tax Justice and Governance Platform who paid him a courtesy visit in kaduna yesterday.
Zaid Abubakar also disclosed that 23 local governments in the State are yet to remit the backlog of Pay-As-You-Earn (PAYE) and withholding taxes between 2013-2014.
He however said plans have been concluded to audit all the Local Government Areas for 2015-2018 financial years.
Zaid Abubakar, thanked the team and expressed readiness of his agency to work with the Network since they have one thing in common which is tax justice in Kaduna, Kafanchan and Zaria.
“In the last few months we have been in office, we have been coming up with innovations to improve our tax system in Kaduna State and by the time our website comes up, we shall be uploading our reports.
“We are looking at the possibility of starting uploading our report online by the first quarter of 2020.
“We want to be the first state in Nigeria where people can have access to their tax clearance within 48 hours so far they pay their taxes correctly. We are also upgrading our clients side to make it possible for them to access their tax identification number (TIN) online.
On tax for service he said, “People are not paying taxes. For example, if we put it in ratio 1-10, Kaduna is not even in 4. We are going to do a lot of awareness and we may upgrade to enforcement which is captured in the tax laws.”
On duplication of tax between the local and state government he said, “Inter Switch has been engaged and they have promised us that there won’t be issue around reconciliation because each LG has a mobile agent which enable both the LG and state to know what they have generated.
“2013-2014 liability is still hanging on all the 23 LGs. All LGs have a backlog of remittances of PAYE and withholding taxes.
“We are also going to serve them notice of audit of their 2015-2018. If they fail to comply, we will go to Abuja and deduct what they are owing us direct from the source.
“Another issue here is that, more than 30,000 companies in Kaduna, Kafanchan and Zaria who don’t pay their taxes and some of them that do, they only pay meagre amount,” he said
In her remark the leader of team, Barrister Rebecca Sako-John said the objectives and areas of concern of the group which include but not limited to sensitising people on their responsibility on tax and what they should expect in return; campaigning fair tax in the State by way of partnership with the agency.
Acccording to her one of the key issues they want to address is duplication of Internally Generated Revenue (IGR) .
“we want to see the possibility of maintaining a quarterly publication of tax collected in the State so people can understand and begin to appreciate the need to pay their taxes. It is cheaper and easier to publish it online.”
“campaign’ for tax for justice is another thing we want to see. We want to see a situation, for example, when the market people pay their taxes, can we see them having a good toilet facility they can see which will in turn, improve and encourage prompt payment of taxes.” She said

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