Councils Bared From Direct Collection
IN a bid to boost its revenue base and encourage investment, Kaduna State Government weekend enacted new tax codification and pension laws, even as it barred the 23 Local Government Councils and other unauthorised agencies from collecting tax revenues.
Governor Nasiru El-Rufai, who signed the new laws, warned against sharp practices that manifested in the previous years under the past administration, adding, “let it be clear that the new tax code comes into effect immediately”.
He decried the loss of revenue suffered by the state in the past through tax collections, pointing out “henceforth, no local government in Kaduna State, or any other agency other than the Kaduna Internal Revenue Service (KADIRS) can approach individuals and businesses for the purposes of collecting taxes and levies.
“KADIRS will collect all revenues, and remit what is due to every local government. Those posing as revenue consultants or who block roads to collect money must know that they have been put out of business. This new tax law has no room for rascally behaviour, disorderly conduct, harassment or cash collection,” the governor stated.
He explained, “the new Pension law reinforces our belief that the contributory pension scheme offers the best outcomes for pensioner and government alike.”
“That is the rational and logical thing to do to guarantee pension payments and make them sustainable,” he noted, stressing, “this government inherited arrears of gratuity and pension amounting to N14.3 billion.”
“Our state pension law will ensure that future retirees from the public service never suffer the pain of unpaid pensions. It will also allow us settle the pension arrears through a Retirement Redemption Fund, over years of sustained and careful investment”.
The Kaduna Chief Executive expressed gratitude to DFID GEMS-3 programme “for the support we received to present the bills to the state House of Assembly.
“We also thank our trade union leaders and various trade and business associations whose contributions during the consultation and public hearings have helped to produce these two laws that are much improved, and that will work for the people of Kaduna State”.
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