Kaduna: KADIRS urges manufacturers to explore tax reliefs under new law

The Kaduna State Internal Revenue Service (KADIRS) has urged manufacturers and other businesses to take advantage of tax incentives and reliefs provided under Nigeria’s new tax laws.

The Acting Executive Chairman of KADIRS, Dr Muhammad Lawal, made the call while speaking at the 29th Joint Annual General Meeting (AGM) of the Manufacturers Association of Nigeria (MAN), Kaduna Branch.

Lawal said the new tax framework provides incentives for businesses operating in sectors classified as areas of special economic interest, urging manufacturers to study the relevant provisions and schedules of the law.

He said some of the reliefs provided under the law could run for several years before beneficiaries become fully exposed to taxation.

“Many of your industries will fall within those categorizations and you are allowed within that law to enjoy many reliefs that are also in the statute,” he said.

The KADIRS boss also said the new tax regime would simplify tax administration through the consolidation of taxpayers’ records under a single Tax Identification Number (TIN).

According to him, the development would address the previous situation where individuals and businesses had separate tax records when they operated or moved between different states.

He said the centralised system would enable tax authorities to access taxpayers’ history and make tax administration more seamless.

Lawal also disclosed that Kaduna state had aligned its tax laws with the new federal tax laws, following their passage by the State House of Assembly and assent by Governor Uba Sani.

He said the reforms had also reduced the number of revenue lines in the state, recalling that Kaduna previously had more than 400 revenue lines before the consolidation of its tax laws reduced them to about 30.

He said the reforms were aimed at simplifying taxation, harmonising revenue collection and improving compliance among businesses.

The KADIRS boss further disclosed that enforcement powers had been strengthened under the new tax laws, with stiffer penalties and interest for default.

He, however, said the objective was to make compliance easier while ensuring that taxpayers who deliberately failed to meet their obligations faced appropriate sanctions.

Lawal urged manufacturers to familiarise themselves with the new tax laws and take advantage of the incentives and reliefs available to eligible businesses.