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Published On: Thu, Nov 12th, 2020

Adults residing in Kaduna state to pay levy from 2021 – Official

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From Femi Oyelola, Kaduna

The Kaduna State Internal Revenue Service (KADIRS) said every adult residing in the state is to pay N1,000 annually with effect from 2021.
The Executive Chairman of the agency, Dr Zaid Abubakar said this at a press conference in Kaduna, held in Kaduna yesterday.
He explained that the levy is in line with the provision of Section 9 (2) of the Kaduna State Tax Codification and Consolidation Law, 2020.
He added that the law mandated every adult residing in the state to pay N1,000 annually as development levy.
According to him, the essence is to retransform the infrastructure of the state and reposition the economy to meet the yearnings of the people.
“This will only be achieved by payment of taxes and levies which would be ploughed back into the economy for the residents to enjoy the dividends of democracy.
“As the name implies, the development levy is for the development of the state. We are all living witnesses of the economic transformation taking place in the state.
“This is evident with the ongoing massive road construction, renovation, upgrade and equipping of hospitals and schools, and provision of the needed infrastructure for development to thrive.”
Abubakar explained that the levy was based on the constitutional provision that allows states to collect an amount, on annual bases, from residents called development levy or economic development levy.
He said that the amount could be N100, N500, N1000, depending on what the national or state assembly determined in the tax law.
He said that the development levy has been in place in Kaduna state for more than 50 years, adding that the residents used to pay N100 annually, but with little enforcement.
He explained that the recent review of the state’s tax law increased the amount from N100 to N1,000 in line with current economic realities.
“We ought to have commenced enforcement since January 2020 but extended it to 2021 due to COVID-19 lockdown and its accompanying economic hardship.
“But there will be full enforcement beginning from 2021 in accordance with the provisions of the state laws and other relevant tax laws,” he said.
Zaid said that the levy would be collected by KADIRS in collaboration with the 23 Local Government Areas of the state and traditional rulers, adding that the modalities would be made public soon.

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