The Kaduna State Internal Revenue Service, KDIRS, said it generated N9.6 billion Internally Generated Revenue, IGR, between January and June.

Muktar Ahmed, the Executive Chairman of KDIRS, told the News Agency of Nigeria on Thursday in Kaduna that workers constituted the largest contributors followed by Kaduna State Geographic Information Service.

Mr. Ahmed identified other sources to include hospital bills and school fees.

He said that the state had three to four million potential tax payers, but expressed regret that only about 400,000 were in the KDIRS revenue net.

Mr. Ahmed said that efforts were being made to bring all eligible tax payers into the tax net to boost the state revenue generation and provide better services to the people.

He, however, acknowledged that the N9.6 billion IGR was significantly short of the N27 billion expected to have been generated in the first half of the year to meet the N54 billion targeted this year.

“We were actually hoping to generate about N11 billion in the sale of government properties which would have boosted our revenue to N22 billion in the first six months.

“But the process is ongoing and we are hoping that it will soon pull through.

“Another revenue line that we have not fully tapped is the land use charge that every real property owner in the state will pay.

“The state executive council has approved the land use charge rates for 2017 which is N10, 000 for people with real properties in Government Reserved Areas (GRAs) and N1000 for those in suburb areas.

“I am optimistic that by the time we start collecting the land use charges, our revenue generation will significantly improve,” he said.

The chairman said that local government areas remained major challenge in revenue collection for KDIRS as their officials were still collecting cash in local government areas.

“In the process, tax payers are short-changed. We will not allow that to continue. We have sent out intelligence to fish out those involved.

“Already, seven officials including VIO officials in our motor vehicle registration offices have been arrested and charged to court for forgery of vehicle documents and criminal conspiracy.

“I assure you, we will soon clean KDIRS of bad eggs and block all leakages so that the government will get its due revenue,” he said.

Ahmed thanked tax payers in the state for the cooperation so far and appeal for more support to move the state forward.

(NAN)

Source: http://www.premiumtimesng.com/regional/nwest/239078-kaduna-generated-n9-6-billion-igr-january-june-official.html

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Wow this pretty crazy the are only collecting tax from 13% of the the population. This seems to be a trend on national and state level where a small percentage of population actually pats tax. The rest just supplement by allocation and import taxes.

The chairman said that local government areas remained major challenge in revenue collection for KDIRS as their officials were still collecting cash in local government areas.

I can bet cash they aren't giving receipts. The pocket half and nobody knows or cares.

Blue3k:
Wow this pretty crazy the are only collecting tax from 13% of the the population. This seems to be a trend on national and state level where a small percentage of population actually pats tax. The rest just supplement by allocation and import taxes.



I can bet cash they aren't giving receipts. The pocket half and nobody knows or cares.

Sensible leaders would recognize that the key to solving this problem is moving Nigeria as rapidly as possible to becoming a cashless society, which would enable the broadening of the tax base, both by decreasing income-tax avoidance opportunities, and by enabling the collection of VAT on most consumption goods. In principle, there is no reason why even street hawkers selling gala couldn't use electronic terminals - the unit price of such kits has been continuously falling over the years, and is rapidly tending towards zero. One benefit of such a move for the street hawkers themselves is that it would become much harder for policemen to extort bribes from them, and to the extent that all transactions became cashless and traceable, the same benefit would be available to the rest of society: Nigerian policemen would either have to start living on their salaries, or organize and demand more realistic pay, rather than endlessly harassing ordinary citizens.

Unfortunately, the CBN has consistently made the wrong decisions on such issues over the years, frustrating the efforts of the mobile telecoms operators to extend electronic banking to the masses by emulating Kenya's M-Pesa: instead, the CBN barred them from entering the business and reserved the right to the domestic banks who don't want to have anything to do with the less affluent, as they don't consider the profits on such retail banking worthwhile, not when there are bumper profits to be made by the usual avenues of money laundering for embezzlers, or "round tripping" by well-connected speculators who can buy subsidized dollars.

The knock-on effect of this short-sightedness on the part of the CBN isn't just that the FG is unable to keep tabs on most economic activity, and is therefore forced to rely heavily on taxing only a small portion of the population, but it also makes it much harder for less well-off Nigerians to get access to credit at reasonable rates (instead of having to rely on moneylenders charging exorbitant amounts). No bank account means no credit history, which means no formal lending institution has any basis to trust you with their money, and even if you say you want to use your house or your land as collateral, the Land Use Act makes that much less useful than you might hope. All of this means the economy grows more slowly, which worsens the long-term funding difficulties of the Nigerian government in the new age of cheap oil and electric cars.

omohayek:
In principle, there is no reason why even street hawkers selling gala couldn't use electronic terminals - the unit price of such kits has been continuously falling over the years, and is rapidly tending towards zero.

It's true they could but it's crazy how many people don't use debit cards. My cousin a clothes website and a lot her customers order through bank account or call her to submit orders. Then my girlfriend's landlord seems to collects only cash for rent. Last example the Ubers in Nigeria only take cash. It's crazy around the world it's opposite for Uber.

omohayek:
The CBN has consistently made the wrong decisions on such issues over the years, frustrating the efforts of the mobile telecoms operators to extend electronic banking to the masses by emulating Kenya'sM-Pesa:

I don't get what's wrong with these guys. The government acknowledged the growth and potential of financial tech industry. They are annoying talking about diversification but won't do easy things to accomplish goals.

Blue3k:


It's true they could but it's crazy how many people don't use debit cards. My cousin a clothes website and a lot her customers order through bank account or call her to submit orders. Then my girlfriend's landlord seems to collects only cash for rent. Last example the Ubers in Nigeria only take cash. It's crazy around the world it's opposite for Uber.

The advantage of cash in the instances you mention is precisely that it facilitates avoiding the payment of any taxes on the transactions involved, but once the ratio of e-payment users to cash users reaches a tipping point, it becomes too difficult for vendors to hold out and demand cash. I'd also bet that Nigerian card issuers are probably charging vendors too much for their services, due to a lack of sufficient competition; in the UK, card-vendor fees have been driven down so much that all supermarkets now allow card usage even to pay for a 50p purchase (less than a can of Coke).

I don't get what's wrong with these guys. The government acknowledged the growth and potential of financial tech industry. They are annoying talking about diversification but won't do easy things to accomplish goals.

Call me cynical, but I suspect that it's due to the usual greed of Nigerian officials and politicians, not a lack of awareness of the consequences of their poor decisions. I'm sure the present setup suits a lot of powerful people just fine, because it lines their pockets without requiring them to do any hard work, even if it has terrible consequences for Nigeria as a whole. "What do I care about the masses if I can siphon off a few million dollars to buy properties in London and Dubai before the next elections? Besides, my victims themselves will be the ones hailing me as a 'big man' anyway!" That is the sad mentality of the average Nigerian office-holder.

Blue3k:


Source: http://www.premiumtimesng.com/regional/nwest/239078-kaduna-generated-n9-6-billion-igr-january-june-official.html

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Not sure how you extend that to Anambra

omohayek:

Sensible leaders would recognize that the key to solving this problem is moving Nigeria as rapidly as possible to becoming a cashless society, which would enable the broadening of the tax base, both by decreasing income-tax avoidance opportunities, and by enabling the collection of VAT on most consumption goods. In principle, there is no reason why even street hawkers selling gala couldn't use electronic terminals - the unit price of such kits has been continuously falling over the years, and is rapidly tending towards zero. One benefit of such a move for the street hawkers themselves is that it would become much harder for policemen to extort bribes from them, and to the extent that all transactions became cashless and traceable, the same benefit would be available to the rest of society: Nigerian policemen would either have to start living on their salaries, or organize and demand more realistic pay, rather than endlessly harassing ordinary citizens.

Unfortunately, the CBN has consistently made the wrong decisions on such issues over the years, frustrating the efforts of the mobile telecoms operators to extend electronic banking to the masses by emulating Kenya's [url=/wiki/M-Pesa]M-Pesa[/url]: instead, the CBN barred them from entering the business and reserved the right [url=/news/business/cbn-insists-on-bank-led-mobile-banking/175168.html]to the domestic banks[/url] who don't want to have anything to do with the less affluent, as they don't consider the profits on such retail banking worthwhile, not when there are bumper profits to be made by the usual avenues of money laundering for embezzlers, or "round tripping" by well-connected speculators who can buy subsidized dollars.

The knock-on effect of this short-sightedness on the part of the CBN isn't just that the FG is unable to keep tabs on most economic activity, and is therefore forced to rely heavily on taxing only a small portion of the population, but it also makes it much harder for less well-off Nigerians to get access to credit at reasonable rates (instead of having to rely on moneylenders charging exorbitant amounts). No bank account means no credit history, which means no formal lending institution has any basis to trust you with their money, and even if you say you want to use your house or your land as collateral, the Land Use Act makes that much less useful than you might hope. All of this means the economy grows more slowly, which worsens the long-term funding difficulties of the Nigerian government in the new age of cheap oil and electric cars.

tell it to the Fulani herdsmen

aribisala0:
Not sure how you extend that to Anambra

Did you read my comment correctly did you just want to have a pointless argument. I said Anambra probably has low amount paying taxes. Besides we already know this isn't only state this phenomenon happens.

Blue3k:


Source: http://www.premiumtimesng.com/regional/nwest/239078-kaduna-generated-n9-6-billion-igr-january-june-official.html

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meanwhile, bayelsa generated 30 trillion in that 6 months. But the Hausa Fulanis are. Sitting on it.

Blue3k:


Did you read my comment correctly did you just want to have a pointless argument. I said Anambra probably has low amount paying taxes. Besides we already know this isn't only state this phenomenon happens.

But what is the basis for this probability? Even Lagos state says the same thing till tomorrow so I am not sure why on a thread about Anambra you singled out Kaduna for direct comparison .So now that you say it was just baseless speculation I will leave it

Good to hear. What did Osun generate within same period?
Mapet/deomelo, you may be interested in this.

aribisala0:
But what is the basis for this probability? Even Lagos state says the same thing till tomorrow so I am not sure why on a thread about Anambra you singled out Kaduna for direct comparison .So now that you say it was just baseless speculation I will leave it

Your asking the basis for the probably then point out a pattern. If multiple states express sane issue that indicates pattern.

Blue3k:


Your asking the basis for the probably then point out a pattern. If multiple states express sane issue that indicates pattern.

You said "LIKE KADUNA". In other word you were trying to justify or explain the apparently low figure. I am not sure what Kaduna has in common with Anambra

Probability is not the same as a guess. Probable means LIKELY . Now there must be some basis for that.

All states claim they can improve their IGR but in practice it seems like an mpty boast. I am not pointing out a patter. AT ALL. Lagos has demonstrated clear improvement nd their ta colletion is high tech so when they say it we take it seriously,

In the case of Anambra you are just speculating

MyNewJackeT:


tell it to the Fulani herdsmen

And what exactly does this content-free statement of yours have to do with anything I've written? Why bother quoting me at all if you had nothing of value to add? And no, I don't consider you grinding your "Fulani herdsmen" axe in any way relevant to my statements, as it isn't as if I've ever defended them in any way.

If you can't be bothered to carefully read and understand what others have to say, don't go quoting them for no good reason just to make your banalities seem intelligent.

thumps up

Desyner:
Good to hear. What did Osun generate within same period?
Mapet/deomelo, you may be interested in this.

Do you have a brain? use it

omohayek:

MyNewJackeT: :


tell it to the Fulani herdsmen

And what exactly does this content-free statement of yours have to do with anything I've written? Why bother quoting me at all if you had nothing of value to add? And no, I don't consider you grinding your "Fulani herdsmen" axe in any way relevant to my statements, as it isn't as if I've ever defended them in any way.

If you can't be bothered to carefully read and understand what others have to say, don't go quoting them for no good reason just to make your banalities seem intelligent.

content-free abi daft? Abeg call a spade a spade